Brian Rubins

Is bridging faster face to face?

Brokers and borrowers working to give lenders all the information they need should cut delays and secure a bridging loan quickly, especially when negotiations are face to face, according to Alternative Bridging Corporation.

Brian Rubins, director at Alternative Bridging (pictured above), said that for most bridging loans, there was no purpose in meeting before the lender had reviewed the broker’s proposals.

“Commercial loans and residential development finance are more complex, yet [are] often larger and offer highly profitable opportunities for enterprising brokers and to lenders prepared to get a clear understanding of the proposal.”

The lender added that for commercial loans, this meant details of the letting and income generated, intentions as to improvements and the borrower’s ability to sell or refinance were paramount.

For development finance, Alternative Bridging explained that there was the question of phasing, the conditions in the planning permission, the developer’s experience and track record, as well as understanding the construction procurement, any section 106 agreements and cash flow forecast and appraisal.

“As soon as the lender can confirm the application is of interest, this is the time to talk,” added Brian.

“Sitting face to face, it is so much easier to obtain detailed explanations and it is a two-way process.

“It is a time for the lender to discuss and understand the opportunity and for the borrower and broker to learn and discuss the lender’s terms, conditions and requirements.

“It looks obvious, but this way of working is not offered by all lenders and is often resisted by the broker.”

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