The recent economic down turn and credit crunch have caused huge problems for the finance industry and loan companies over the course of the past couple of years and although we are now starting to see the first small signs of recovery (albeit very slight indeed), the effects of the credit crunch and current recession are still taking their toll on financial institutions, particularly those connected with the secured loan industry.

Over the past twenty four months or so, we have seen several large name companies close their doors to new loan applications from consumers and loan brokers alike, making it more and more difficult for  potential borrowers to obtain the secured loan they require.

Just when we thought that we were starting to see the light at the end of the tunnel and things were starting to pick up again, another secured loan packaging company has announced that it is to cease trading and will close down with immediate effect. Loan Options, a packaging company which sources secured loans across the market on behalf of loan brokers and financial intermediaries for their clients, made the announcement today, blaming the current state of the market and difficult economic conditions for the closure.

Loan Options have said that any ongoing applications will be transferred to V Loans, who will continue with the processing and completion of all current loan applications and there should be minimal disruption for loan brokers and their clients. Managing Director of Loan Options, Andy Moody commented on the decision, he said “The market deteriorated to the stage where we could not continue and we were put in a position where we had to cease trading. We will do everything we can to make sure our brokers are protected.”