Bridging is the way forward to fund deals

“It’s no longer a one size fits all sector,” says Steve Barber, managing director of Bridging Finance Solutions of the finance industry, as BFS expands across the North and Midlands.

Bridging Finance Solutions, the official table sponsors of TheBusinessDesk.com’s Business Masters 2017, is heralding the growth of bridging as a funding solutions.

The company has been in the bridging business for 10 years and managing director Barber says that more and more professionals and high street lenders are looking to bridging to finance deals.

He said:“The bridging industry is undoubtedly maturing in a way that the mortgage industry did in the 1980s. Individual firms are finding their own niche in a growing market be it by geography, loan size, security type etc. Bridging Finance Solutions has developed a niche market in the North and Midlands whilst many bridging firms focus their attention on the South and South East.

“A further differentiator is our commitment to support lower value loans starting at £25,000 and ranging up to £1.5m. Essentially, we now have the internal systems and processes in place that allow us to consider those smaller value loans that many firms simply don’t have an appetite for.”

The notion of bridging as a last resort form of lending is undoubtedly disappearing. Firms such as Bridging Finance Solutions which are well established in the sector, and with FCA accreditation, are changing perceptions of the bridging industry in general.

Barber continued: “Bridging firms are being increasingly recognised by high street lenders and professionals including brokers, solicitors, and accountants to provide that essential cog within a process that can often unlock a deal. Bridging loans are not necessarily restricted  to property, although this is where the bulk of lending is applied, but can be used in situations of probate, tax and legal issues.”

The lower level of interest rates also make bridging a particularly attractive prospect. At the beginning of 2017, Bridging Finance Solutions (BFS) announced a new interest rate marking its lowest figure to date from 0.75% per calendar month on terms of up to 12 months.

Barber said: “We wanted to start the new year with a strong incentive for both our existing and potential customers. We’ve seen our turnover double during the last two years and are expecting similar growth for the year ahead. Now is an incredibly exciting time for the bridging sector and our business and as this form of fast finance becomes increasingly accepted as part of mainstream lending.”