News & Views

Where 2nd charge bridging finance can make a difference

For the last couple of years the government has been urging banks to lend to small firms. Yet, despite frequent calls on UK lenders to do their bit for the recovery it seems they are failing to comply.
Lenders have squeezed their criteria so tight that only the bare minimum of businesses have managed to obtain funding at a time when small businesses need finance more than ever. Small firms need to grab opportunities where they can. This can mean a firm needs cash quite quickly. And if getting any funding from mainstream lenders is difficult, getting it quickly is impossible.
This is where 2nd charge bridging finance can be of use. 2nd charge bridging can provide the necessary funds to fill the gap left by high street lenders.
At Fincorp, we recently assisted a broker partner in helping a client to complete on a commercial transaction relating to their business. The client had exchanged on a particular purchase but there was a delay in receiving commercial finance from their bank - a situation many small businesses in the UK will be familiar with. They therefore needed 2nd charge bridging finance in order to fill the void. The client was looking for finance in region of £600,000 by way of a 2nd charge loan secured on their main residence. We were able to provide this within a matter of days and the client was able to complete the transaction.
Examples like this demonstrate that fast, efficient 2nd charge bridging can mean the difference between a business' ability to grow and strive and it being rendered stagnant and is therefore a crucial product.


Leading bridging lender joins NACFB

A leading lender in the bridging market has shown its dedication to the broker community by becoming a member of the National Association of Commercial Finance Brokers (NACFB).
Specialist lender Fincorp operates primarily in the London and South East market and offers 1st and 2nd charge loans from £150,000 to £5,000,000. Its directors, who have a combined experience of over 70 years in the finance industry, recognise that the need for good, sound advice will grow as a result of the downturn as consumers become keener to know they can trust the products they are taking out. As such the lender wants to assure both brokers and customers of its credentials.
By joining an organisation with the standing and reputation that the NACFB enjoys, Fincorp is able to do this.
"Whilst we have been in business for over 20 years, up until 2008 we relied mainly on repeat business from a core of long standing clients," says Matthew Anderson, director at Fincorp. "Since 2008 the bridging market has changed dramatically and more and more borrowers are reliant upon brokers to source their finance solutions. We are responding to this change in a number of ways, and it is hoped that our membership of the NACFB will further raise Fincorp's profile with their broker membership."
Fincorp's mantra is clear and simple lending - something which its directors see not as a marketing slogan but rather as the cornerstone of all of its lending. In keeping with this, Fincorp's products have no hidden fees and no upfront charges. Fincorp can lend up to 70% of the property value, secured on the property.

Platinum Options endorses Fincorp as a preferred bridging lender

In recent years the bridging market has become more populated. As mainstream lenders have tightened criteria, the need for specialist bridging lenders has become all the more apparent and as a result new entrants have come into the market.
With this increased competition it is more essential than ever to build long-lasting relationships and maintain custom. With that in mind Fincorp is delighted to be a lender of choice for Platinum Options.
Packaging/placement business Platinum Options (www.platinumoptions.co.uk) was created four years ago and combines over 50 years experience collectively within the financial services industry. The company offers a "Problem prime" hub where lenders are prepared to underwrite cases which may have struggled through the more conventional high street lender, and make decisions on a "Priced to risk" basis for good quality applications.
Malcolm Fitchett, business development director of Platinum Options says: "We get numerous enquiries from mortgages to short-term finance but what our reputation is really built on is being able to provide an open and transparent service that meets customers' needs in the time that they require."
"It's important for us to find appropriate solutions and one of the main reasons we use Fincorp is it's a very simple process. We get an initial enquiry, we can send a quick email or make a quick phone call and the benefit is we're talking to the decision makers. Fincorp is a principle lender and therefore the directors make the decision and we get the answer straight away. We can then provide the facility letter within a matter of hours. For that reason alone Fincorp is one of our preferred providers."
"In addition, however, with bridging loans from Fincorp there are no hidden costs. There are many providers out there where everything isn't always straightforward but with Fincorp it is open and transparent. There are no entry fees and there are no exit fees, which can mean valuable savings for the client. Therefore the marriage between Platinum Options and Fincorp is one that we wish to expand in the future and continue to grow."
Barry Scott, business development manager at Fincorp, says: "We are very pleased that Platinum Options has chosen Fincorp as it is well respected in the industry and the team has a wealth of knowledge behind them. We are looking forward to working closer with them in the future."