However, some people are facing a very different set of problems altogether. For investors, the question right now is: where do I put my money?

As interest rates remain at an all time low, individuals and companies with substantial deposits have been left with significantly reduced returns on their money.

We reported last week on Bridging & Commercial that investors looking for fast returns on their money have turned to offering bridging and mezzanine finance to property professionals.

As Adrian Bloomfield, the chief executive of the Association of Short Term Lenders, explained: “Investment opportunities are few and far between at present. If you’re sitting on a very large amount of money that you want to invest, where would you invest it today? Making funds available for short term lenders could turn out to be a wise investment. Short term lenders are very focused on profit. After all, there’s no point in lending anyone money unless you can make a margin on the fund.” 

One company has offered these cash-rich investors a way to lend their money directly to those who need it, in short, letting them become the bank.

Strata Finance is made up of a group of commercial finance brokers, who describe themselves as acting like a dating agency – filtering information, controlling exchange of documents and allowing investors to liaise with borrowers in order to agree the rate, term and conditions of the loans… yes, just like a dating agency.

Investors are able to lend their money on a short-term basis, typically 12-24 months and earn significantly higher interest, typically 10-15%.

Nic Rotton, from Strata Finance, added: “The final rate is yours to set. You are not investing into the company or taking an equity stake. In addition the majority of borrowers are able to offer full security for your loan against a commercial property.”