Short term lender reports 132% increase in business

Short term lender reports 132% increase in business


Merseyside-based short term lender, Bridging Finance (NW) Ltd, is reportedly experiencing a record busy period, having announced a 132% increase in lending volumes for the last quarter, compared with the same period last year. 

The firm said the figures for the third quarter of 2009 reflect an increase in investors acquiring properties at auction, as well as businesses turning to bridging loans in the face of a continued squeeze on bank lending. In April, the lender launched its £20 million Short Term Business Finance fund, which offers loans of between £30,000 and £500,000 secured against commercial and residential property.


One of the fastest ways of drawing down capital, bridging loans are traditionally used for a variety of purposes including purchasing properties at auction, funding refurbishments, funding management buyouts and acquisitions as well as raising capital for cash flow injections, tax liabilities and stock purchases.


Steve Barber, director of Bridging Finance (NW) Ltd, said: “The greatest increase in enquires has come as a result of distressed property sales requiring fast funding. Since January, property prices have been showing good value when measured on rental returns, but it wasn’t until the summer that we saw the first major wave of new investors enter the fray.


“This is a clear sign that investors, disillusioned with poor savings rates and heavy losses on other investments, are effectively calling the bottom of the market and attempting to capitalise on property bargains.


“This, combined with the fact that average completion time for a commercial mortgage has risen to 150 days, from just 85 days in 2007, means more property professionals to seek bridging finance to plug the gap.”


Based in Wallasey, 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.

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