The Short Term Business Finance Fund has been launched by Merseyside-based Bridging Finance (NW) Ltd – with the £20 million funding stream establishing the company as the only private principal lender in North Wales and the Wirral peninsula.

Bridging Finance (NW) Ltd. was set up by former management consultant Steve Barber in 2005and has since arranged more than £40 million of bridging and development loans across the North West and North Wales.

The company’s fund will offer loans of between £30,000 and £500,000 typically for up to six months, secured against commercial and residential property.

Steve Barber, director of Bridging Finance (NW) Ltd, said: “It’s not only struggling companies that are being affected by the credit crunch. Otherwise healthy businesses are feeling the squeeze from less liquidity in the banking sector and as a result many are not achieving their potential.

“For those with capital tied up in bricks and mortar, bridging finance is an attractive means of unlocking cash and facilitating growth quickly, whilst bank facilities are arranged.

“At a time when other short term lenders are retreating from the market we are expecting substantial interest from businesses and entrepreneurs who are asset rich but, relatively cash poor.”

Bridging finance is traditionally associated with the property sector but is becoming increasingly popular in the wider market as one of the quickest and simplest ways of drawing down capital for a variety of purposes.

Bridging Finance (NW) Ltd. was established by former management consultant Steve Barber in 2005and has since arranged more than £40 million of bridging and development loans across the North West and North Wales.