Market Financial Solutions enters administration after ‘unexpected’ banking issue

According to the lender, which was founded in 2006, this step has been taken to “protect employees, investors and stakeholders while the business works through an unexpected banking-related issue”.

Market Financial Solutions said the decision followed a temporary restriction on access to the company’s banking facilities, arising from a procedural matter with its primary banking provider.

The lender noted that while the underlying business remained asset-backed and operationally sound, the board concluded that placing the company into administration was “the most responsible way to safeguard value and provide stability during this period and allow operations to continue under the supervision of the court”.

In a statement, the company said that administration “provides a structured and regulated environment in which the business and its assets can be protected, loan management, collections and servicing can be maintained, while independent officers oversee the process and engage with stakeholders. The immediate focus is on stability, transparency and the careful preservation of value”. 

Paresh Raja, founder of Market Financial Solutions, commented: “This is an extremely difficult moment for everyone connected with Market Financial Solutions.

“As a family-founded business that has been built over nearly 20 years, this is not a decision that has been taken lightly.

“The current situation does not reflect a failure of the underlying business or the quality of our assets, but rather a technical and procedural impasse that has temporarily limited our access to everyday banking facilities.

“My priority is, and always has been, the people behind this business: our staff, our investors and our creditors.

“Entering administration allows the company to be protected while we work openly and cooperatively with the joint administrators to find a way forward.

“I remain fully committed to preserving value and doing everything possible to support a positive outcome for all stakeholders.”

The director remained hopeful that, subject to progress during the administration, there may be an opportunity to stabilise the business and explore options for its future, but any such steps would be taken with the interests of creditors and investors firmly in mind. 

Over its lifetime, Market Financial Solutions has managed more than £1.2bn in cumulative lending, with the loan book reaching approximately £2.4bn at its peak.

The business has grown steadily over almost 20 years, supporting borrowers, investors and partners through multiple economic cycles, providing bridging and BTL finance across the UK property market.

More on this story as it unfolds.