B&C regrets to announce that longstanding bridging lender Cheval is closing its doors after 17 years in the short term finance market. 

We understand that this decision has been made as the lender has been unable to secure further funding from its existing principal source, Clydesdale Bank. 

We believe Clydesdale Bank has chosen not to renew Cheval’s funding line following its strategic review which saw the bank’s parent company, National Australia Bank, reposition themselves in the market. 

As a consequence Cheval has already made a number of redundancies, including some of its well respected BDMs; others are subject to a 90-day notice period.

The lender is not taking any new enquiries as of this week and may have to sell its loan book if it cannot secure an alternative funding line by January 2013 or see out the book. 

The lender, which incorporates Cheval Bridging Finance Ltd and Cheval Commercial Finance Ltd, has been a pioneer of low rates and market-leading service since entering the market in 1995. 

Cheval is authorised and regulated by the FSA and was the first bridging finance lender to become a full member of the Council of Mortgage Lenders (CML). 

It is also a founder member of the Association of Short Term Lenders (astl), with one of its directors sitting on the board, and a long standing patron of the National Association of Commercial Finance Brokers (NACFB).

The news has come as a shock to the industry which has collectively expressed its recognition for the work Cheval has done over the years. 

B&C previously reported that Clydesdale Bank prematurely called in a development loan, signalling its withdrawal from the market.

The retraction of lending came after National Australia Bank took control of Clydesdales’s commercial real estate portfolio when elements of toxic assets forced the firm to restructure its balance sheet.

Earlier this year, the Chief Executive of Clydesdale Bank, David Thorburn, explained that the review would mean making ‘tough decisions’. 

He said: "The time is right for us to re-examine our business given the recent reversal in the economic recovery. Getting the right business mix and structure is vital and the review will shape that.”

Cheval has been a loyal friend to B&C over the years and we would like to wish the team the very best for the future. 

Cheval was unable to comment.