At the beginning of April the British Chambers of Commerce told us it expected the economy to avoid the much speculated triple dip recession. It also commented on how business lending was being restricted to larger organisations and that SMEs were being left out in the cold.
It’s this imbalance that causes me perhaps the greatest concern. Only by helping businesses of all sizes can an economic recovery truly be sustained. Faced with a funding shortage many residential and commercial property investors are turning to bridging finance to help finance their business aspirations and growth.
In a recent survey we conducted, almost a third of brokers (33%) said that bridging finance had been the most successful form of business for them in the last six months. Equally, an even greater number (48%) told us that it was a product they would focus on in the year ahead.
It’s clear both the residential and commercial property markets are on the turn. House prices have started to gather momentum and commercial property, especially outside of London, is tipped to see a resurgence of investment .
Investors need to be able to move quickly when opportunities arise, be it buying at auction, refurbishing or renovation, or simply improving cashflow while a sale goes through or longer term finance is secured, bridging loans allow property professionals to remain fleet of foot.
Often the limiting factor between success and failure or profit and loss is having the correct finance in place. This is where brokers come into their own, able to advise clients of the options available. By making them aware of the flexible funding available to them they can ensure they achieve their investment and growth aspirations.
With more than half (53%) of the brokers we surveyed acknowledging they expected to have to diversify their product offering further this year, it’s clear bridging finance can benefit both brokers and their clients.
