Historically, lenders in the short term space had a bit of a reputation for ‘ask no questions’ lending when it comes to bridging finance. This is a thing of the past and we are now in an environment of responsible lending.
However, this does not mean they can’t be supportive of loans used for more speculative or out of the ordinary situations. We recently provided a client with terms that released equity from an asset, where funds were going to be used for investment in a new petro chemical plant in Ghana.
We also arranged finance for a restauranteur who had closed down a failed business and needed financial support abroad, until he had sold the premises lease here in the UK.
It goes without saying that funds needs to be for legal purposes only. However, the lenders main focus is ensuring the client’s plans include a defined exit in terms of repaying the loan back on or before the loan expiry.
We will take the time to understand the borrowers needs and the wider picture in terms of what they are looking to achieve. We are often involved in advising on back up plans just in case ‘Plan A’ doesn’t quite work out. Sadly, we do also get called in where clients have taken unsuitable short term loans that didn’t meet their requirements at outset, and we have to restructure them in order to get them back on track.
Most of the lenders in the sector are a member of a professional body such as the Association of Short Term Lenders or Association of Bridging Professionals, and are generally affiliated to specialist solicitors and valuers able to meet the needs of them and their borrowers, to deploy funds in a timely manner – whatever they might be used for!
Our message is that whatever you might need funding, regardless of who you may have spoken to before, don’t assume it can’t be done until you have spoken with the Enness Specialist Funding Team…