With Lancashire Mortgage Corporation

Each week we bring you a step by step guide to setting up and completing a commercial loan

This week it's step 5:

Second charge choices

 In the current lending market, accessing finance has never been more difficult. Traditional lenders, such as high street banks, have tightened their lending criteria and become more cautious.

Many businesses will have a first charge loan with a bank, which makes gaining access to finance even more difficult as banks are less likely to consider further advances on their long term business loans. This approach, not only restricts businesses accessing finance and developing, but even organisations that do secure funding will have to go through a lengthy process to get the money they need.

In today’s market, second charge commercial bridging finance and second charge term loans have become more important in the lending sector. It allows companies the opportunity to secure bridging loans or second charge term loans against land or property, enabling them to raise the required capital to progress their business objectives, whether over a short or long period of time.

Second charge bridging finance and second charge term loans offer businesses a versatile lending facility, which highlights a key opportunity for brokers to provide an alternative lending option to help businesses take advantage of short-term or long term opportunities.