Are Brokers the New Bankers?Make Text Bigger
Long gone are the days when you could approach your bank manager and they would use their discretion regarding granting a loan.
Bank lending to small and medium-sized businesses has shrunk substantially since the financial crises. New regulations make it more difficult for banks to lend to companies, on top of which customers have lost the trust that they had for their banks. When they do offer to lend, often the terms are prohibitive.
With the traditional banks being unable or unwilling to lend, more and more new lenders are coming to the market.
There are now hundreds of sources for funding. These include the high street banks, however there are far more specialist lenders and challenger banks than ever before. Given the myriad of lenders it is difficult for clients to be aware of all the different choices. However, my team at Brooklands Commercial Finance, partner firm for Property118, are dealing with them on a daily basis and can place deals with the most appropriate lender. We will know:
- The appetite that the lender has for each type of transaction.
- What their criteria is
- Do they have a limited supply of funds or are they reliant on recycling funds before they can issue new loans
- What are the true costs (including hidden costs)
- Do they have a proven track record
- How quick are they
- How do they treat customers if things go wrong
We have seen clients, who are not aware of the above, being left high and dry. This includes developers that have had their funding pulled half way through a development.
Particular types of funding require in-depth knowledge of the funding market. These include:
- Refurbishment and conversion loans
- New build developments
- Complex BTLs including expats, offshore trusts and HMOs
- Unsecured business loans
Therefore, if you need assistance with any type of property finance please do not hesitate to contact me and the team using the form below: