(PRWEB UK) 10 April 2013
This trend is reflected in the latest Bank of England Credit Conditions Survey, which indicated that there is increasing demand for credit among SMEs. While there has been an increase in credit availability overall, it has been concentrated among large corporations with little or no increase of availability among SMEs. Despite numerous government initiatives to stimulate business growth among SMEs, they continue struggling to acquire traditional forms of financing.
A spokesperson from Hanover Square Brokers said: “We are witnessing a huge increase in the number of small business owners that are unlocking finance from personal of business assets such as property in order to take advantage of business opportunities, this is proof that bridging loans are beginning to become more and more mainstream”.
Securing a bridge loan requires a security. Usually these could be either personal or commercial property, or building plots (with or without planning permission) and any type of land including farmland. It does not matter whether a property is freehold or leasehold or if another form or borrowing is secured on it. People with bad credit history or County Court Judgements are still able to secure them. They are typically seen as a short-term method of financing and come with higher rates of interest because of the risks involved for the lender. For example those using a bridging loan to buy a property while selling an existing one, need to make sure the balance is cleared when it is sold.
Businesses are increasingly using commercial bridging loans to provide short-term funds in order to fulfil large orders, cover temporary cash flow problems or pay unexpected tax bills. They can typically be secured with any form of freehold commercial property.
About Hanover Square Brokers
Hanover Square Brokers is a specialist financial brokerage firm that deals with bridging finance for commercial and residential property purchases. As one of the best-established brokers on the market, they have formed long-lasting partnerships with some of the UK’s leading bridging loan lenders. This has allowed them to source extensive fund with immediate notice at the lowest rates for their clients. Visit http://www.hanoversquarebrokers.co.uk for more information or call 0207 205 2755.