The traditional definition of bridging now only represents a small part of what my company and others like it do, and the term fails to convey the diverse product range the sector offers.
For example, capital-raising can be a problem with certain mainstream lenders, particularly when it comes to raising money to pay tax bills and brokers often use our funding lines to bridge these requirements for their clients.
They then consolidate their customers’ loans with a newly chosen term lender, bridging the criteria requirement and allowing short-term funding so their clients can get what they need from the lending facilities available.
Development finance is another area our sector now supports, to some extent replacing high street banks. We support brokers with developer or builder clients who want to start or complete developments.
In fact, this has extended into the self-build market where the criteria of mainstream lenders often do not suit clients’ needs.
In such cases it’s worth remembering that our sector may have a solution through either a first or second charge.
Bridging firms can also work with brokers to show how they can locate clients and present deals to lenders.
So if you are looking to diversify your clients’ funding lines the bridging sector is worth a second look.