Bridging finance can often be the perfect short term solution, enabling a project to come to fruition or allowing borrowers to overcome an obstacle, however, time should be spent prior researching and considering a series of factors that will help realise a successful deal.
Steve Barber discusses: “Understanding the deal that is being proposed and the how’s and whys of a bridging loan is imperative. Full client disclosure is key – problems unearthed further down the line can affect the product being offered or negate the deal altogether. Clarity and honesty from the outset will save a lot of work later on. Any issues with credit history should also be discussed at the beginning on the understanding that a full credit check will be carried out. Clients should also be clear on a commercially viable exit route.
“It’s also important to ensure lender and customer match. Whilst we lend UK wide, many bridging companies do not have a strong appetite for the North. Others will cap their loans at a maximum value or minim value – we offer loans from £25,000 but many start loans at £100,000 or even £300,000. Researching the market is important for customers and enables them to find the right lender to match aspirations.
“Experienced professional support is also critical. Working with a solicitor who has no experience of how bridging finance works can result in delays in the deal or advice given against bridging finance that could lose the deal altogether. Brokers can advise on exit funding and often form an integral part of the professional advise.
Steve added: “Careful consideration must be given from both sides and time spent ensuring that the deal is right for both. Knowing when a bridge will work isn’t always necessarily the role of the customer but more the broker – many brokers don’t understand the scope of bridging and its benefits. In this instance, it is the responsibility of the bridging company to ensure that they fully understand the transaction and it is the correct solution for the client.”
BFS have been providing solutions to clients for nearly a decade and offer market leading terms. With FCA regulation and membership of the main trade bodies, the firm is well placed to assist clients and brokers with a wide variety of requirements.