There is an element of jealousy that inspires the sometimes negative perception of the short-term lending market sold to intermediaries by some industry experts.
The most prevalent gem suggests bridging finance and other short-term lending is the last bastion of professionals looking for a substitute for sub-prime lending.
This is nonsense as the purpose of short-term lending is encapsulated in its name. It is an avenue to funding where conventional sources are unable to respond because lending restrictions make it impossible or where a fast resolution is needed.
Everyone is familiar with the auction scenario and bridging gives clients the confidence to bid at auction.
But raising capital to deal with immediate problems like cashflow and new business opportunities or for tax bills and other demands for emergency funding require intermediary help.
For these and other uses, short-term finance has been useful, particularly as it is now possible to borrow against personal assets as well as property.
With the number of new lenders and investors coming into the short-term arena, it is hardly surprising some talking heads are miffed that our little backwater is becoming a force to be recognised.
Provided clients understand that short-term funding is just that and they have a planned exit strategy through longer term refinancing or ultimate sale, bridging can be recommended with confidence by brokers.