Hope for Scotland!

Bridging finance is becoming an increasingly popular option for Small and Medium Enterprises (SMEs) in Scotland, where often these businesses are looking to release equity to grow the company, invest in equipment needed for the business and so on.

One of the main benefits of a bridging loan is the speed of funds and application as in most circumstances, bridging lenders are able to arrange finance much quicker than mainstream lenders, often in days or weeks rather than months. It solely depends on what the borrower is trying to achieve and their individual situations.

Bridging finance can be secured on a range of property types from commercial premises, including essential retail, office blocks etc, as well as mixed-use property which has both a commercial and residential element. Not only is bridging finance a feasible method of securing the funding for time-sensitive projects, but it can also provide much needed capital until a longer-term finance solution is obtained.

The process for obtaining a bridge loan is usually straightforward with a more flexible set of criteria than most traditional methods, including mortgage lenders. However, compared to the bridging loan market in England, the Scottish market is still very underserved and a lot smaller, with fewer lenders available.

Therefore, one of the main challenges for brokers is finding a lender who provides competitive LTVs, rates and a diverse range of unique and innovative products. As time is usually of the essence for clients who are considering a bridging loan, it is important for a broker to be aware of the options available and to find a lender who has a significant amount of market experience.

Once a suitable lender has been found, if the broker and client require the lender to act quickly, the lender will need to receive essential information from the borrower, broker and their solicitor, e.g. confirmation of ID, details of the borrower’s proposed exit strategy and so on. Compared to a traditional mortgage provider, bridging lenders require a lot less information to get the ball rolling, making the process a lot quicker and streamlined for the borrower. However, it is of course very important the information provided is accurate, complete and submitted quickly, as any delay in doing so will inevitably slow down the process. Being aware of steps like this is essential in ensuring an excellent service is delivered to the client.

As bridging finance has become more prevalent in recent years, with more brokers starting to recognise how their clients can benefit from utilising short-term loans to achieve their commercial aspirations, bridging loans are no longer being viewed as a last resort in Scotland.

Recently, Hope Capital, a specialist provider of bridging loans, announced they would be providing short-term property finance for properties based in major towns and cities in Scotland. With a growing demand for bridging finance in Scotland, it is lenders such as Hope Capital, who will assist brokers with the delivery of innovative, unique and flexible bridging finance solutions, helping their clients secure finance efficiently and quickly.

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