BM164_52_53:Layout 1 5/9/08 02:30 Page 2
Advice
to scour the whole sector to find a bridging Making use of bridging finance generally before. That’s how BFL have been able to
finance house that would accept the costs more than conventional borrowing. The make such a conspicuous a breakthrough in
collateral on offer and provide the right level twin differentials of quick completion and a the short-term finance market.
of funding, at a fair interest rate, over an short-term period tend to make this Urgency is sometimes a factor in business
appropriate time period. All too often it was a specialised form of lending more expensive dealings. The offer should be made simply
time-consuming ‘moveable feast’ - in effect, to administer and, of course, there is a higher because there is a sufficiently satisfactory
an auction of frenzied negotiations. The element of risk attached for the lender. business argument.
outcome was dependent on who had the For example, BFL provided £2.2 million of
funds in place to lend, the strength of their
‘The offer should be made
short term funding to a company called NGR,
appetite for the particular deal and the scale
simply because there is a
so that it could quickly purchase a site in
of their interest rate expectations. sufficiently satisfactory Leeds that had become available. Director
In contrast, BFL offers clients fixed interest
business argument.’
Chris Thomson felt it was an opportunity too
rates, fixed time scales and rapid responses. good to miss, and he was delighted when the
They have a highly skilled and highly Business people in a hurry or on a mission whole transaction was completed in just 3
responsive team. Typically, they are able to are seeking a short term expedient. They working days. He said: “The whole process
give immediate outline decisions and accept that the advantage they’ll gain from was co-ordinated by Bridging Finance Ltd,
generally complete transactions within five the advance will certainly outweigh the costs who drew upon their excellent relationships
working days. involved and normally replace the bridging with solicitors and surveyors to ensure that
The Buzz
funds with conventional secured borrowing the process went smoothly and all deadlines
well within the agreed duration of the bridging were met.”
‘The big buzz is putting funds in place facility. This is a sophisticated service and There was no arm-twisting, no
quickly, so that clients can grasp our clients have professional advisors. They brinkmanship and no rate negotiations. In my
opportunities or avert pressure from are well aware of the cost implications. It is view, that spells a clear, bright future for
challenging business or personal situations.’ an absolute pre-requisite of doing business bridging finance.
says Baguley that everyone understands these ground
Decisions about quite substantial rules.
transactions are made over the telephone in Transparency and clarity, particularly on Chris Baguley is Managing Director of
the course of the initial conversation. Then it’s the subject of interest rates, have replaced a Bridging Finance Limited.
all down to hard work, usually against the certain amount of unwarranted opportunism
www.bridgingfinance.co.uk
clock. that existed on some fringes of the sector
Business Matters issue 164 • 53
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68