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Advice
Seizing
opportunities
Parts of the bridging finance sector have had a pretty unsavoury reputation in the past.
However, one company, the Manchester based, Bridging Finance Ltd is enjoying
considerable success by revisiting the market with a fresh perspective. This approach
has put the short-term finance proposition back into the business mainstream.
Here Chris Baguley, managing director of the company explains why that is its rightful
place.
I
t is one of life’s certainties that life is full of soon change from being ominous possibilities few days. Conventional lenders prefer to
uncertainties and business life in particu- to uncontrollable realities. make advances over longer timescales,
lar has a habit of presenting us with all The response to both situations needs to usually numbered as a period of years. And
kinds of uncertainties – through situations and be the same - strike while the iron is hot and their professional constraints mean that they
circumstances, both good and bad, which act quickly to either seize the opportunity or never rush into an arrangement without first
arise completely unexpectedly. avert the crisis. establishing their security - the solidity of the
We all welcome the unforeseen Either course of action will normally involve collateral, the quality of the borrower and the
opportunities. They’re one of the things that spending money. If you have the funds to strength of the contract. Decisions are
make business exciting. Usually we need to hand, fine. If not, you have to decide how to usually taken centrally and that means there’s
act on them quickly because it’s unlikely access them. Before expending substantial a queue. The conventional route could take
they’ll recur again. And if we don’t make the amounts of money there are generally weeks or even a couple of months while the
most of the opportunity, someone else will. It conditions to be met and choices to be lender does all the usual checks and
could be the chance to buy a competitor’s made. paperwork.
business or acquire a property that has
Slow lane
But raising substantial funds in very short
tremendous future potential. spaces of time – without paying excessively
Action
Most people are familiar with the for the privilege - can be done.
conventional alternatives: increase your
Fast lane
Unforeseen threats can arrive with similar facility or get an advance from the bank;
unpredictability. They can create a major cash-in a liquid asset; auction the family There is however one such company
personal or business crisis. It could be any silver; seek out a secured loan; ask the which specialises in providing secured
one of a number of familiar scenarios - building society or commercial lender to re- bridging loans either directly or though
maybe an unrecoverable bad debt from a mortgage your home or business property. professional channels. The appropriately
trusted customer or a contract on which your All are tried and tested routes to raise liquidity named Bridging Finance Limited (BFL) is
business has come to rely goes elsewhere. It in normal circumstances. based in Manchester and has made its mark
could simply be that the tide of market forces But unexpected opportunities or threats by bringing fresh order and clarity to a sector
has turned or that returns from a promising aren’t normal events. of the lending market that was itself once
investment have failed to materialise. How long will the opportunity last - days, a regarded - at best - as being rather uncertain,
Perhaps some personal change that you couple of weeks? How long before the threat clouded and arbitrary. Let’s be honest, many
hadn’t anticipated skews the direction of does irreversible damage? short-term lenders are known for their
carefully laid plans. And how long will it take to put the funds expensive and unscrupulous practices.
Opportunities can be fleeting - unless you in place? It used to be the case that finance
grasp them they’ll soon evaporate. Threats The answer is probably much more than a directors or professional advisors would have
52 • issue 164 Business Matters
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