Project Merlin could help boost on-trade

Published: 10 February, 2011

The government's Project Merlin deal with the banks has the potential to stimulate activity in the pub, restaurant and hotel business, according to Christie Finance.

The specialist broker, a sister company to property agent Christie & Co, welcomed the deal which will lead to £190 billion being lent to businesses in 2011, including £76 billion to small businesses.

David Grant, head of UK business mortgages at Christie Finance, said: "Given our 2010 experience of increased year-on-year activity, we would hope the majority of this £76 billion is directed towards new transactional business and not just simply re-priced, refinanced and recycled existing small business debt. Much of last year's lending was just that and thereby enabled the Banks to conveniently label it 'new' lending."

Last year banks showed more flexibility with lending, Christie said, with the company securing funding for 11% more businesses during the year compared to the previous 12 months.

Simon Hughes, UK managing director at Christie & Co, said: "We very much hope that a proportion of this new lending will free up some of the pent up demand from potential business purchasers in our sectors.

"The provision of finance remains the single largest obstacle to a sustainable recovery in our markets and the announcement today will be welcomed by existing operators and new entrants alike."

Printer friendly version