Loan firm starts £20m fund

A Merseyside loan company has launched a £20m short-term lending fund targeted at small businesses.

Wirral-based Bridging Finance (NW) said the fund will offer loans of between £30,000 and £500,000 typically for up to six months, secured against commercial and residential property.

Director Steve Barber 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.”

Bridging Finance was established by Mr Barber in 2005. According to the company it has arranged more than £40m of bridging and development loans across the North West and North Wales.