Despite being only a few months into 2022, the year is already promising to be one of renewal.
The shockwaves of the pandemic on the commercial sector are subsiding. Businesses are now getting their previously parked plans back on track, and even setting off on new pioneering ventures.
This level of business recovery is heartening to see.
The finance and lending industries are also busy innovating, with new products entering the marketplace with expanded criteria and flexible terms, demonstrating the enormous confidence and appetite to lend in the sector.
This optimism is infectious and validates a recent Crystal survey which revealed that 88% of brokers anticipated marginal or excellent growth in 2022.
However, there are challenges in the current market that require increased speed and flexibility to seize the opportunities on offer.
A boost for businesses
Brokers are more than likely already familiar with the benefits of bridging when it comes to chain-breaking or auction finance in the residential space, but the uses do not end there.
When it comes to short-term funding solutions, bridging can also be used in a variety of ways for businesses, from individual and partnerships; limited companies to pension funds, and offshore companies.
Increasingly, bridging finance is now being used by SME businesses to accelerate their post-pandemic strategic objectives, but also stimulate recovery and growth in ways that brokers perhaps did not know possible before.
For example, bridging finance can be used to:
- Acquire stock to meet renewed demand or to extend a business’ product offering.
- Provide additional capital to stimulate growth or cover a shortfall in cash flow.
- Facilitate funding for the expansion of an existing company, or the creation of a new business venture.
There are a few notable benefits of using this method to fund these particular business objectives.
Firstly, it can be arranged quickly and often with less burdensome underwriting than other types of borrowing. Secondly, brokers can secure competitive LTVs and interest rates, and lenders may offer flexible repayment options if a business’ exit strategy is well-considered.
Speed and flexibility
The appeal of bridging is in both its speed and flexibility, which by design, allows the application process to be quick and easy.
Brokers and their clients can find bespoke products that consider different backgrounds and credit histories, which can be an invaluable feature for recovering businesses adversely impacted by the national lockdowns.
Well prepared cases can also expect to reach the decision making and completion stages in weeks rather than months – especially when guided by a trusted specialist finance intermediary.
A driving force for completion
Specialist finance providers are highly skilled when it comes to complex or challenging cases, being both deft and meticulous when it comes to preparing applications.
They will also act as a driving force for completion, keeping you informed of progress made, plus keenly chasing lenders and solicitors for you – a blessing for time-pressed brokers, indeed.
In conclusion, with the continuous innovation in short-term finance products, brokers are frequently benefitting by turning their attention to the specialist sector.
Specialist bridging particularly can be a powerful tool for brokers who have clients requiring more liquidity, or alternatively, where they require funds specifically for company needs.
In addition, the powerful combination of a specialist expert’s knowledge, the efficiency of its processes, and integrated technology systems cannot be underrated when it comes to delivering quick decisions and completion pay outs.
Jason Berry is group sales director at Crystal Specialist Finance