It is not, however, the first crisis we have had to overcome in the specialist lending industry — and it won’t be the last.
For those of us who worked through the global banking crisis of 2007 and 2008, the level of uncertainty and pace due to market contraction will be uncomfortably reminiscent. And for those who have never operated through such a situation, the current rate of change might seem scary.
No market is continually straight forward but, similarly, no downturn is catastrophic. Experienced lenders, that have successfully supported brokers throughout many different cycles, understand how to continue to deliver consistency as best they can and how to ensure they are ready to get on the front foot again as soon as the market recovers.
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In the midst of the unparalleled measures to tackle coronavirus, it can be difficult to see a light at the end of the tunnel. But, this situation will end and, if we all stick to the guidance, there is a good chance that we can start to return to normality, sooner rather than later. Unlike the global banking crisis, this has been a short, sharp shock, but one that the market entered from a good place, and the level of government action will certainly soften the impact on the economy.
As we emerge from a world dominated by Covid-19, our industry will have an important role to play as short-term lending will be crucial for small businesses and property investors as they rebuild their cash flow and look to ramp up activity once more. In turn, this activity will help to kickstart the economy as it will filter through to so many areas.
At Alternative Bridging, we often talk about our experience and longevity. In a booming market, these attributes may not mean much to a broker, but it is at times like this when it is paramount. We have been through many times of crisis before, and so we are ensuring the business stays robust and strong, so that we can deliver the funding certainty and can-do attitude you will need to help your clients to recover from this difficult period.
The short-term may be difficult, but we have a real opportunity to build long-lasting relationships that contribute to future economic recovery.