<
p>Bridging finance is no longer the simple product used to satisfy short term requirements, according to Alternative Bridging Corporation.
The bridging lender believes it is often a financing complete in itself, replacing loans from the mainstream lenders providing an alternative source for financing property development or business expansion.
Brian Rubins, Managing Director of Alternative Bridging, felt while a number of bridging loan lenders had ventured into satisfying short term requirements, such as development finance, it was not as easy as it looked.
“Analysis is key and knowing the right questions to ask avoids wrong decisions and enables a quicker response,” said Brian.
“When the project encounters delay and cost overruns, is it time for lenders to cut and run, leaving the developer stranded - or is it time to rely on experience and extend the period and increase the facility?
“To make the correct decision needs confidence backed by experience so borrowers are advised to choose lenders carefully.”
Brian accepted that a bank loan, from either a high street or a challenger bank, if available, was often cheaper than a bridging loan but pointed out that the key words were “if available” and to them should be added “when”.
“What is being proven time and time again is that speed and certainty of funding and the ongoing relationship outweighs the argument of cost,” he added.
Bridging finance is no longer the simple product used to satisfy short term requirements, according to Alternative Bridging Corporation….
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