In my opinion
Business support means security
Brokers can help clients achieve their commercial goals by encouraging realism and preparation
funding or order to progress with a commercial project. In an environment where the
by gareth lewis, head of business development, Tiuta
It’s a sign of just how far the bridging and short-term finance sector has evolved that we are no longer talking about the products as primarily offering just a solution for residential borrowers who are looking for the necessary funding in order to engineer a move while they wait for their existing property to sell. Years ago this type of residential
deal was particularly commonplace and uses for such finance often centered around individuals who perhaps had bought at auction and needed funding quickly, or simply had to move within a given timescale and thus needed bridging loans to facilitate this move. As we have moved through the
credit crunch and beyond, emphasis is now much more commercially orientated. While bridging loans for
residential borrowers continue to be offered and accepted, our core customer is now likely to be the entrepreneur or property developer or business individual that is looking to secure short-term
major banks continue to look the other way when it comes to funding such projects, individuals have looked to bridging loan lenders like ourselves in order to make the deal happen and ensure the project can go ahead.
HelpIng busIness Without any doubt it is lending from our sector that has ensured all manner of business activity has continued – in our own right we have been responsible for companies being able to continue operating which has kept people in jobs, livelihoods maintained, taxes continue to be paid and the whole system that ensures the economy can keep going remains viable. This type of lending would
certainly not have been the majority of our business a few years ago however the needs of business individuals are not being serviced in the traditional manner and therefore we have been willing and able to step into the breach left by the major banks. At the heart of our business is
the security on which we lend, the property, and this focus allows us to help those within the property development sector buy, develop, renovate, refurbish and maintain their portfolios.
32 BrIdgIng InTroducer september 2011 Increasingly, we are working
with developers who need our funding in order to not just secure the property itself but also develop to a state where it can be made habitable or businesses can move in, with the ultimate intention of it being refinanced or, more rarely, sold. In simple terms, we work with developers in order to add value to a property.
DevelopIng Development This type of transaction makes up an increasing amount of our loan book and introducers are becoming much more aware of where we can help in this regard, plus our experience in the sector and our ability to make a deal happen. After all, our type of lending
is somewhat different to the mainstream; we look to make a deal happen and we work on an individual case by case basis in order to do this. This is not a question of the client having to be shoehorned when it comes to our finance arrangements; we work hard on finding a way to make our funding available and we offer bespoke terms in a significant number of cases. The area of property development
and development finance is however not always a simple one and we often come across a number of common problems which can put the deal in doubt or, in some cases,
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