ArtiLib Article Library By Tag Author Index Submit Article Login Suggestions
Bookmark and Share

Caravans, Motorhomes, and Trailers - A Sector Facing Insolvency

A caravan, motorhome or a trailer is a very big purchase for most families. These can be thousands of pounds in value. Very few people can afford to buy such a purchase in cash, and so credit is required.

By: Steve Thatcher
Category: Automotive
: Finance:Credit
Posted: Jul 24, 2009
Updated: Jul 24, 2009
Views: 109


A caravan, motorhome or a trailer is a very big purchase for most families. These can be thousands of pounds in value. Very few people can afford to buy such a purchase in cash, and so credit is required.

As we all know the market for credit has contracted very much recently and people seeking credit for purchases such as this have found that lenders in this market place have withdrawn making these buys so much more difficult.

So the problems for vendors of these vehicles has become much more difficult. It was already becoming hard without losing lines of credit. The reason for that is because, being a major purchase a family will think hard before making the buy. If a family fears unemployment it will take decide if this is a good use of the family budget and so that money may be saved instead of spent.

Caravan companies usually have large plots on which they display their wares and these can be expensive. It is also expensive to carry stock for display.

Many will try to have shifted how they sell by switching to sell online, where they can act as middlemen or agents, but this really is a type of purchase where you need to climb on board and feel and touch what you are buying.

Bank borrowings may be large for such a business and it is clear from my discussions that relationship managers with the major banks are taking steps to call these loan facilities in or switch them from overdraft to personal loans or charges over personal assets such as homes.

I have known a couple of such businesses go under in the last few years and I suspect that others will follow.

As with all businesses going through financial hardship, the key to turning the position around is to take affirmative action early in the proceedings. The quicker that an intervention takes place, the easier it is to arrange alternative funding.

Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com for personal contact email sthatcher@helpwithdebtuk.com if you have a business that needs advice
For Steve's thoughts see http://steves-debt.blogspot.com

Finally if in the UK and you need a friend to speak to call 01162171406

About Author

Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to.
Steve blogs at http://steves-debt.blogspot.com

Contact Author   Author Website




Disclaimer: Article submitters are solely responsible for the content of their articles.
ArtiLib can't be held liable for the contents of the articles.   Report Abuse

Browse By Category
Contact ArtiLib| Privacy Policy| Terms of Service