Recent Capital Market Developments

How are the current capital markets affecting Cambridge Financing Company?

In spite of the challenges presented by the current state of the capital markets, we continue to fund a record number of cases each month.

The recent developments in the credit markets have affected a magnitude of companies in many different ways. The Wall Street Journal has been reporting for months about the crisis in lending that has negatively impacted some of the world’s leading banks, brokerage firms and insurance companies.

Over the past several days, we have been asked about the setbacks that some of our competitors in the premium finance industry have been experiencing.  Although we do not feel that it is appropriate to comment about competitors, we do understand the concerns being expressed by some agents who may not be as familiar with the capital markets. The principals of our firm have over 25 years of experience in premium finance and have successfully financed in excess of $1.5 billion of premiums.

We are fortunate in the fact that because of our experience and credibility, we have several committed capital partners who are intimately familiar with this space and our program.  The turmoil in the capital markets has affected the Cambridge program by causing us to be more selective about who meets the financing criteria.  However, there is always a silver lining. Right now, it appears that previously unavailable sources of capital for premium financing may be currently considering our program as a viable alternative to other opportunities, at lower rates.

We thank you for your business and look forward to financing many more of your cases in 2008.