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Businesses Bank on Short Term Finance
11/11/08  Bridging Finance Limited has seen a surge in short term loans by businesses who have cash tied up in property and are waiting for the tide to turn before they sell. Bank of England figures reveal the amount of money British firms have on deposit tumbled by the most since 1980 in the 12 months to September.* Chris Baguley, managing director of Bridging Finance Limited, a company that supplies bridging loans to businesses says demand has soared from property rich, cash poor businesses: "Businesses are finding their piggy banks are empty and their cash tied up in property or failed investments. Many have found that commercial loans from their traditional lenders are becoming less available and they are looking for alternatives. There are still deals to be done and savvy investors are picking up excellent property at fantastic prices. "We're seeing more businesses come to us for quick, easy access to cash so they can snap up deals. Cautious lending criteria means some banks are failing to lend to solid businesses with successful business models and even when they do, it can be a long, drawn out process." Bridging Finance Limited has seen a 30% increase in applications for bridging loans from SMEs with cash tied up in property. Short term lending is a booming sector worth around £2 billion a year. The outlook for gross advances is expected to see rapid growth from £2.5 billion in 2005 to £5.6 billion in 2010. print page
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