GUIDE TO BRIDGING FINANCE
But the classic bridge, even in its
different forms, is just the tip of the ice- berg of the uses of short-term bridging loans. What bridging lenders like us fun- damentally offer is access to credit secured against property for a relatively short period for a lawful purpose. That might seem to be stating the obvi-
ous, but when you break down the com- ponents of the product, you move away from the word bridging and all its restrictive connotations, so one is no longer restricted to thinking about bridging loans in the terms of the classic bridge. Freed from the chains of the tradi- tional bridging mindset, I can illustrate how these loans are in fact useful in a wide range of circumstances.
Temporary living expenses Brokers will appreciate that, by defini- tion, most bridging loan customers are asset rich and cash poor. We have been approached to assist clients who for var- ious reasons need to raise funds to assist with living expenses over a short period of time.
Typically they are, or have been, on significantly higher than average in - comes and with significant assets, but for some reason have found their income stream temporarily interrupted, while they still need to service various and pos- sibly high-end outgoings. By carefully assessing the customer’s
background and circumstances, a bridg- ing lender can help provide what is in effect personal cash flow without any property transaction being undertaken.
Business purposes In contrast to previous examples, bridg- ing loans can also be used to assist cus- tomers who require funds for business purposes. For instance, one of our cus- tomers had an opportunity to purchase their business partner’s 50% share of their company at what they believed to be an advantageous price. This transaction was particularly
30 The
time-sensitive as there was a possibility that the vendor of the shares would rene- gotiate if the purchase did not complete by the contractual deadline.
Debt repayment UTB has openly placed itself in what may be regarded as the quality end of the bridging market, a fact we believe is reflected in the competitive interest rates that we offer. A consequence of this is that we do not usually entertain credit repair and debt consolidation cases. But we have been able to assist cus- tomers where a debt situation has arisen which requires urgent resolution, for example the payment of substantial VAT demands. What matters to us is that the customer’s story is credible – and of course that there is adequate security for the loan.
Bespoke nature of loans Another key attribute of bridging loans that should not be overlooked is the per- sonal and bespoke nature of the loans that we complete for customers. The scenarios and cases referred to obviously all have their own
guide to Bridging Finance 2012
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40