Flexibility isn’t just about bending over backwards
One thing that brokers should understand is that many lenders in the bridging market have more flexibility than mainstream lenders, depending on the funding lines each has in place to facilitate their loans. A privately funded and owned bridging lender, like Hope Capital, will be much more flexible on loan terms than institutionally funded lenders, and will work with a broker to find solutions for their clients.
For instance, we do a lot of short term commercial lending. Debt forgiveness deals agreed with mainstream banks are some of the best deals we have facilitated for borrowers. We have also been involved with loans where we have worked with asset finance companies to release quick funds on properties owned by their clients.
There are many types of projects and each client’s needs are different, as a result finance has to be diverse. Lenders have to have the ability to assess the borrower’s situation, work with them to ensure not just affordability in the short term, but also a realistic exit route. Recently there has been a worrying increase in the amount of re-bridging finance, which shows the number of cases where the agreed exit route has proved unrealistic.
There are now more lenders that are looking at cases with a flexible approach, whether through private funding or because the investment stream is more open to risk. At Hope, as a privately funded lender, we are able to make our own decisions, look at each case with a more entrepreneurial eye and find the right solution, term and repayment method. I wouldn’t say we bend over backwards, but we are very flexible.
The most important thing to recognise, when considering options for a client, is that if there is a time limit, whether it’s speed of completion or term, then there is usually a bridging lender that can help. As the saying goes ‘If you don’t ask, you don’t get’ and when it comes to bridging finance this is true in more cases than you might have considered.