Skander Malcolm who runs GE Capital in Australia says that because the banks have large depositor bases they were able to fund raise more effectively than smaller lenders such as GE Money.

“We’re trying to access capital markets, they are accessing capital markets as well. Certainly, it’s a lot easier for them because they have a whole lot of deposits on hand.” Mr. Malcolm told Sky Business News.

Mr. Malcolm added that the European Sovereign Debt Crisis had had an impact on the cost of funding.

“But from our perspective, we’re well funded through this year and into next (year), so we’re pretty comfortable with where we are. But for some of the organisations out there trying to raise funds, it’s not exactly a liquid market, so there are certainly challenges still out there.”

Mr. Malcolm stressed that GE Capital was not aiming to compete with the major lenders, preferring instead to maintain a specialist position.

“When we target specialist segments, particularly in the retail side but also in the commercial side, then we compete successfully. We generate returns that are anywhere between 20 and 40 per cent better than major banks, and that’s because we stick to segments that we know and understand.” he said.

During the global financial crisis GE Capital exited the home and car loan segments, because it was felt that the company would find it tough to fund those loans.

“Our funding requirements are a lot easier now, having made those decisions, We have no plans to move back into mortgage or auto.” Mr. Malcolm said.

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According to new data released this week, the demand for auto finance suggests that recovery is on two tracks, with demand for new cars robust, whilst demand for second hand vehicles crashing as much as 49 per cent in February compared with the same month in the previous year.

The data, which was compiled by Veda Auto suggests that auto sales for both new and second hand vehicles is 9 per cent below the same period in 2009, as the economy was reaching rock bottom.

“We’re definitely at a lower base level, everything is still trending backwards a little bit ” the head of Veda Auto, David Scognamiglio, said.

Mr. Scognamiglio said he was encouraged that despite the decline in private demand, business demand had not fallen off a cliff as the Federal government tax breaks cease and the decline in lending began to take effect.

He added that it would be May before demand for auto finance exceeded the level it was at in 2009.

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If you are still feeling the pinch though, it can take its toll on your body, causing a variety of symptoms from body pain, sleeping difficulty and exhaustion. There is even a name for the condition, as silly as it sounds it’s called Recession Strain Injury, and there are millions of Australians who owe more than they can manage and are at risk of suffering from physical stress symptoms as a result of money problems.

If you find yourself suffering from financial tension, here are five tips that can help you get your financial position into a healthier condition.

1) Diagnose Your Problem

Perhaps the first thing you need to do is calm yourself, and once you have taken a deep breath, write down your after tax take home pay each month. Doing this is the first step in defining what your boundaries are for a financially healthy life.

You might find you can extend your earnings by claiming welfare payments if you are unemployed, renting a spare room out, or taking a part time job. If you know what you have written down is the end of it, then you will have to learn how to live within your boundaries.

2) Take Control Of Your Life

Once you have determined what your boundaries are, you need to start looking at where the money is going. You need to start looking at your monthly credit card and bank statements to find the exact source of your financial pain.

Writing down your daily expenditure is a useful way of tracking where your money is going, and whether you are making the best use of your dollar. I run a monthly spread sheet, which records everything I spend on my debit or credit cards, and every time I take money out from a machine. In the age of internet banking its easy to see where and when you spent your money, and the spreadsheet lets me know that perhaps I am exceeding my monthly limit, and where I can cut back on spending.

Sometimes I don’t want to know where and when I spent my money, because I know perhaps I have gone a little too far, but it’s something I have disciplined myself to do, It is important to know the news even when it’s not good.

3) Get Your Life In Order

After you have worked out what your monthly budget is, and where exactly your cash is going, the next thing you need to do is work out which expenses are the most important to you, as opposed to which of your creditors are giving you the most grief.

You need to focus on the most important payments; mortgage or rent is the absolute first. There isn’t anything more important than keeping a roof over your head. After that you should start looking at any court ordered payments, and unpaid tax, because legal action apart from being more than a pain, adds to your financial burden. Finally you should look at any unsecured debt you have such as credit card or your overdraft.

4) Maintain calm

Even if you find yourself in a financial pickle and under a mountain of debt, the courts tend to guarantee your right to a basic standard of living. The courts have no interest in seeing you being impoverished. This means the court will ensure you have enough cash to pay your mortgage and utility bills, as well as feed and clothe yourself and family.

5) Talk things over

Find someone you can talk too, obviously if you are married or in a relationship, the first person is your partner, it is important to have some support if you want to turn you debt situation around. Creditors are not necessarily rigid unhelpful organizations you would think they are. They have a vested interest in helping you pay off your bills, and have plenty of experience in soothing customers who find themselves overwhelmed.

If you are single, then talk to a friend or debt councillor, but make sure you find someone you can talk over the things that are causing you the financial stress you are under. It is important to understand and believe you are not alone.

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“The government has been advised that the possible departure of Ford Credit from Australia would seriously jeopardise thousands of jobs, most of which are in regional areas, not only across the Ford dealership network, but in the Australian car industry more broadly,” Mr. Swan said in a statement.

In December as the global banking crisis approached its apex in December, the Labour government in directed Australian banks to provide funds to the auto finance companies after GMAC and GE exited the Australian market.

Car dealerships across the country descended into a tizzy trying to arrange alternate sources of finance as the effects of the global crisis in banking meant that their original sources were no longer viable.

Federal Treasurer Wayne Swan said Ford Credit alone provided finance to 230 dealers throughout Australia. The original commitment was for up to A$2 billion ($1.53 billion) of funding, but Swan said the guarantee facility would now be no larger than A$850 million.

Mr. Swan said after the government negotiated a deal with Ford Credit through Credit Suisse that the enable the auto finance company to access up to A$550 million over the next year to support its dealerships.

Ford Motor Company, is the only US Automaker that has not asked for US Federal funding, though it has been hit just as hard as its rivals as the market for new vehicles has contracted substantially over the last twelve months.

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