One item that seemed to slip under the radar in last week’s budget was Clause 2.236
“The government has today (19 March 2014) announced a new agreement by the major banks to process most claims for a ‘deed of priority’ or ‘waiver’ within 7 working days, and for each bank to provide standardised documentation to simplify the process. This will speed up the process for SMEs seeking finance from challenger banks or otherchallenger Banks”.
Sitting on waiver / deed of priority requests has long been a tactic used by the Banks (and other funders to be fair) in order to give them time to see if they can provide a facility themselves (even though in many cases they will already have been approached and said “No”). It is especially pertinent in the world of Asset Based Finance.
I’m delighted that the Government has recognised this as an issue, but it will be interesting to see how it is monitored and enforced.