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Bridging

Commercial Sector: Here’s ‘Hoping’ For A Positive 2022

25 Feb 2022

Hope-Gary-2

by Gary Bailey

In an article produced for FIBA Advantage Magazine, we discuss how commercial business can bounce back from the uncertainties of the last two years.

 

If we have learnt anything over the last two years, it’s that we don’t know what the future holds, however there is no harm in being optimistic.

 

Reflecting on 2021, of course there were challenges to overcome and a great amount of uncertainty, but by no means was it a disastrous year for the bridging finance industry. In fact, a level of opportunity was created to meet the new demands and needs of investors and developers looking for finance solutions in certain areas.

 

At Hope Capital, we worked extremely hard throughout 2021 to ensure we were delivering the best solutions for brokers and their clients, meeting market demand, while continuing to provide an outstanding customer service. As a result, we recorded our strongest ever year in business, with total completions from FY 2020/21 to 2021/22 growing by 107% and nearly a 50% increase in AIPs.

 

That said, if there is a sector which needs a lifeline in 2022 more than any other, it is commercial businesses.

 

Few companies were hit as hard by the Covid-19 pandemic as those in retail and the hospitality sector, where the constant uncertainty and changing requirements resulted in businesses being forced to permanently cease trading or struggle to maintain income owing to many of the public being uncomfortable to mix in public spaces.

 

Therefore, it is no secret or surprise that the number of investors and developers looking to carry out commercial property investments plummeted in 2021. However, as we are now starting to feel hopeful about the future, there now needs to be opportunities to enable businesses of all types to bounce back and thrive.

 

So, what can the bridging finance market do to help those who are looking to make the most out of their commercial opportunities in 2022? Well, it is often the case that the process of purchasing and refurbishing commercial property is complex and long winded, which is where specialist short-term loans become the most viable solution.

 

Compared to mainstream lending, a bridging lender is usually able to provide finance much more quickly, often in a number of days rather than weeks. In addition, as loans tend to be underwritten individually in the specialist lending process, this means they can be more flexible.

 

While we predict there will be a growing amount of investors and developers turning to commercial investment opportunities this year, there is no denying that the last two years has not only drastically changed how we live, but also how we work and this could have long term consequences for the future of our high streets, cities etc.

 

Therefore, the type of businesses which will occupy our high streets, cities and so forth in the future is still uncertain. However, no matter the outcome, bridging loans provide the ideal solution for those who are looking to facilitate change of use projects (including converting a commercial site into residential property), light to heavy refurbishment plans and so forth.

 

Overall, what will 2022 look like for commercial businesses? Well, we certainly hope it’s much better than the challenges which have been presented in the previous two years. From a bridging lender’s perspective though, we look forward to continue playing a vital role in the economy in 2022, by providing customers with access to fast finance, in a responsible and sustainable way.

 

If you are interested in finding out more information about Hope Capital, speak to the team on 0151 523 5998 or email: hello@hope-capital.co.uk

Hope-Gary-2

Gary Bailey

Gary is responsible for influencing and implementing the strategy of the business and embedding the company’s values. Managing the day-to-day operations of Hope Capital, promoting expansion and innovation to achieve its growth ambitions.

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