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.