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Professionals positive about SA’s future – Bidvest Bank

By Bidvest Bank

Professionals – including medical specialists, engineers and architects – are increasingly growth-minded and are positive about South Africa’s future prospects.

So says the asset-based lending and leasing division of Bidvest Bank, an operation close to sentiment among those running professional practices as it is often called in to consult on equipment and vehicle leasing needs.

Byron Corcoran, head of asset-based finance at Bidvest Bank notes: “We’ve witnessed year-on-year growth across all classes of business and categories of clients, small and medium size businesses, large businesses and major corporates. But we see particular focus on future growth by professional practice, especially in the medical field.”

While carrying out credit worthiness assessments, the bank’s asset-based finance teams gain a good overall understanding of practice growth and prospects in various sectors.

According to experience over the last year, professional services looks to be a strong growth sector.

“There is a shortage of specialist skills in several areas,” says Corcoran. “This is clearly a concern at macro level, but at a practice level the shortage translates into strong demand and solid or rising income streams.

“In the medical sector, we see strong focus on revenue-generating assets with the potential to drive practice growth even higher."

“Our clients not only come to use for equipment finance, but for vehicle finance and mortgage finance on commercial property, often to expand their premises. Growth has been so strong in the recent past and future projections are so promising, many of these clients have no hesitation committing to five- or even 10-year repayment terms – an indication that they are committing to the country and are very positive about the future.”