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19/08/09

Short term lender Bridging Finance Limited says that a rise in the number of firms using its facilities indicates that transaction levels and access to bank funding have improved in recent months.

Bridging Finance Limited, whose lending in Q2 2009 was double that of Q1, says that more local businesses are taking advantage of short term finance to raise capital quickly because they are confident that their pipeline deals will complete and provide the funds required to exit the loan.

SMEs that have secured finance from their bank via the government's Enterprise Finance Guarantee Scheme are also using short term loans to bridge the gap between the agreement of the bank funds and the actual advance.

Chris Baguley, Managing Director of Bridging Finance Limited said,

"Loans for this kind of short term capital raising have accounted for 60% of our business in H1 2009, up from 29% in H2 2008. This is good news, as it shows us that both businesses and banks are becoming more confident and that the freeze on credit availability and transactions is beginning to thaw.

"More deals are happening and more cash is changing hands. I'm not about to call 'green shoots', but this is definitely a positive sign for the region's economy."