Once upon a time, short term finance was predominantly for very small loans mainstream institutions simply weren’t interested in. There was also a perception bridging finance was only for the lower-end of the market as a type of ‘last-resort’ finance.
The above is no longer true and frankly hasn’t been for a number of years now. The short term finance space has grown up, not only because it has matured and grown organically but because the market in which it operates has also changed.
Overall, the short term finance market is very liquid and very well financed; many have multiple sources of funding. So, when the banking crisis hit, the bridging lenders stopped being lenders of last resort and became a lifeline for borrowers of all shapes and sizes. Not just for availability of funds but also reliability and speed of deployment, which set them apart from borrower’s traditional sources.
It now isn’t uncommon for specialist lenders in the short term space to be funding projects well in excess of £50m and even lenders in the lower quartile of loan sizes can generally handle loans up to £5m. Rarely now is a loan requirement problematic because of the quantum of debt. Because of this, quite often borrowers choose this type of funding for its speed and flexibility, rather than seeing it as their only option for these larger loan sizes.
So, things have changed in this sector over the last few years and fairly dramatically in terms of maximum loan sizes. But does this mean the smaller loans can’t be accommodated?
The answer is: not at all. The sector has not forgotten its roots and continues to fund the smaller loans as well (often from £50,000 upwards). Yet the message from Enness is that size certainly doesn’t matter and we can advise on the full spectrum.
Even on requirements which at face-value may seem a little small, or extremely large, we can help. For more information on our bridging finance services visit www.ennessbridging.co.uk.