60 seconds with...Steve Barber
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Managing director, Bridging Finance (nw)
How long have you been involved in finance?
I have dealt with finance all my working life in various guises, and exclusively since 2002. I previously worked as a management consultant, setting up logistics and supply chains across the UK and the Middle East. In 2002 I set up commercial brokerage Business Assistance and three years later founded Bridging Finance (NW). We are a private principal lender operating in England and Wales.
How important is bridging finance in today’s market?
Increasingly so, as it becomes a more recognised form of funding for entrepreneurs, property professionals and small to medium-sized enterprises. Bridging’s reputation has changed a great deal in the past five years.
Instead of being perceived as a last resort it’s now considered a mainstream method of facilitating transactions and has come to complement traditional bank funding.
In part, this is due to increased demand for short-term money. The lack of liquidity that has characterised the banking sector has made securing long-term finance a protracted process for businesses. As a result, entrepreneurs and SMEs have looked to bridging loans to complete transactions while longer-term facilities are arranged. Indeed, we’re seeing a rise in referrals coming directly from high street banks introducing bridging to customers while changes occur to propositions to allow for credit sanction.
As a result, more credible players have entered the market, offering transparency and developing a greater sense of confidence.
What difficulties are you facing?
Uncertainty is the biggest challenge. But now prices have hardened and property is again offering a strong rental return in relation to other investment asset classes, we have begun to see investors return to the market.
If there is a change in government this year what effect will it have on the market?
There is speculation that if the Conservatives are elected the Treasury will take over some regulatory control from the Financial Services Authority but the effect depends on what it takes responsibility for. It’s a waiting game but it’s certain there will be change.
Do you agree with impending regulatory changes?
Any changes that benefit consumer choice and transparency in the market have to be applauded. But introducing unnecessary red tape, or putting private finance and commercial finance in the same pot, would be unwieldy and potentially damaging to the economy.
Interview by christine toner
