Ups and downs of crunch
PAWNBROKERS must be loving it, but hauliers and finance houses aren’t having much fun as the economic noose tightens.
While the recent slide has depressed some businesses, it has brought a wealth of opportunities for others.
The credit crunch has reduced consumers’ spending power, hit retailers in the pocket and forced some builders to cease construction of new homes.
But some sectors on Teesside, including the pawnbroking industry, have reported increased activity and a rise in sales as
Even much-maligned sectors such as commercial property are in better health than reports would suggest. The latest CBI/GVA Grimley Corporate Real Estate Survey revealed a balance of plus 15% of firms said they had increased their property holdings in the last six months.
Anthony Platts, divisional director at investment manager Brewin Dolphin’s Teesside’s office, said the current climate also provided opportunities for some credit agencies.
He said: “These companies specialise in lending to people who cannot get credit through traditional means. They charge high interest rates because there’s a higher risk of defaulting on the loan.”
He believes the economic outlook is not as bleak as some are making out.
“Interest rates are still very low and while inflation is rising, it is still low in historical terms,” he said.
