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News and blogs

April 2017

 

Funding 365 reveals reduced Commercial bridging rates from 0.75%pcm

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Funding 365 reveals reduced Commercial bridging rates from 0.75%pcm

Fast bridging lender Funding 365 has today announced that it has cut the starting interest rate for its commercial bridging loan product from 0.85%pcm to 0.75%pcm.

The product - which is available to all brokers - provides 3 to 12 month loans from £100,000 to £5 million+ secured against commercial and semi-commercial properties across England and Wales.

The maximum LTV at 0.75%pcm is 60% although higher LTVs will be considered if additional security is provided.

Uses for the product include acquisition of commercial or semi-commercial investment properties, refinancing of maturing commercial debt, working capital for a business and light property refurbishment.

Eligible commercial properties include (although are not restricted to) retail premises, offices, warehouses, light industrial units and factories.

Funding 365 Managing Director, Mike Strange comments, “We believe that borrowers shouldn’t pay over the odds for bridging, so we continuously assess our products to keep them competitive. I’m delighted that we’ve been able to slash our commercial rate in particular as this strengthens our growing reputation as the go-to commercial bridging lender.”

Funding 365 Marketing Director, Laura Kendall adds, “With our promise to provide fair bridging finance comes a commitment to offer the most competitive rates that we can - to everyone. This newly enhanced commercial product - like all of our advertised products - is available to all brokers and contains no hidden fees or surprises in the small print.

November 2016

 

Funding 365 launches innovative Short Lease bridging product

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Funding 365 launches innovative Short Lease bridging product

Fast bridging lender Funding 365 has this week released an innovative Short Lease bridging product to fill a gap in the short term lending market.

Developed following consultation with brokers, Funding 365’s Short Lease bridging product is targeted specifically at financing the purchase of residential investment properties with short remaining lease terms of between 10 and 70 years.

It will also provide financing to allow the purchase of the lease extension once this has been agreed with the property freeholder.

Loans under this product are available up to a 70% loan to value ratio for a term from 3 to 12 months. The interest rate on the product starts at 0.99% per month. The product has a 2% arrangement fee, but no early redemption charges or exit fees.

Funding 365 Director, Mike Strange comments, “We’re excited to be bringing this new product to the bridging market. Funding 365 is well known for its speed of service and low interest rates. Launching this new Short Lease product also demonstrates Funding 365’s flexibility in financing unusual or complicated property transactions.””

Funding 365 Sales Director, Paul Weitzkorn adds, “Funding 365 has always worked with its broker partners to develop bespoke financing solutions for complex and non-standard scenarios. Now, our commitment to lend on short leases and fund lease extension provides borrowers with flexibility in a world where lease extension timing can be uncertain. We look forward to working with our broker partners on delivering this product to their clients.”

September 2016

 

Funding 365 announces new Sales Director

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Funding 365 announces new Sales Director

Fast bridging lender Funding 365 this week welcomes Paul Weitzkorn to its team as Sales Director.

Paul joins from Goldman Sachs, where he was Head of European Mortgage Sales, managing the team responsible for residential and commercial secured products.

At Funding 365 he will be responsible for leading sales and intermediary relationships and will be working closely with Dawn Trustam as Business Development Manager.

Paul will also be investing in the company alongside the existing directors.

Paul comments, “I’ve watched with interest the success that Mike, Jeff and Mike have created in building up Funding 365. Bridging is a dynamic space to be in right now and I’m excited to be joining the team and applying my experience to the industry. I very much look forward to meeting with brokers and packagers - old and new - over the coming months.”

Funding 365 Director, Mike Strange comments, “I and the other directors at Funding 365 have known Paul for a long time. I worked with him at Goldman Sachs and Barclays Capital, Jeff Stolz worked with him at Goldman Sachs and Deutsche Bank, and Mike Jinn worked with him at Deutsche Bank. He’s an incredible professional as well as a great guy and we’re delighted to have persuaded him to join us. Watch this space!”

Paul can be contacted on paul.weitzkorn@funding-365.com or 0800 689 0650.

June 2016

 

Funding 365 completes £8.5m bridging loan in just 3 working days

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Funding 365 completes £8.5m bridging loan in just 3 working days

Fast bridging lender Funding 365 has completed an £8.5m bridging loan within 3 working days to save a borrower’s buy to let portfolio from being sold at auction.

The borrower needed to re-finance very quickly as their high street lender had appointed an LPA receiver following a dispute and a number of its properties were due to be sold within days.

The loan, which was brokered by LINK Capital UK, was supported by security over a portfolio of 16 commercial and residential properties.

Known for its ability to execute complicated bridging loans very quickly, Funding 365 previously completed a £6.2m semi-commercial bridging loan within just 1 working day of agreeing terms with the borrower.

Funding 365 Managing Director, Mike Strange comments, ”We are very pleased that we were able to help the borrower retain ownership of their property portfolio and allow them the time to re-finance with a term mortgage. This is just another example of the quick, tailored service that our broker partners have come to appreciate from us. Credit must equally go to the team at LINK Capital UK and to our solicitors who worked above and beyond to complete this case within such tight time constraints.”

LINK Capital UK Managing Director, Theo Kemp comments, “As a professional finance intermediary we are always conscious of those lenders that say they can deliver but can’t as ‘computer says no’ or credit committee declines the case at the nth hour. Funding 365 is unprecedented in its professionalism, speed and integrity - delivering what the customer requires on time and at highly competitive terms - especially in this situation with the borrower being in receivership. Mike Strange and Eddie Boakye worked extremely hard with us and the customer to deliver a complex solution so quickly."

February 2016

 

Funding 365 Slashes its Commercial Bridging Rates to 0.85%pcm

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Funding 365 Slashes its Commercial Bridging Rates to 0.85%pcm

Fast bridging lender Funding 365 has today announced a significant reduction in the starting interest rate for its commercial bridging loan product from 0.99%pcm to 0.85%pcm.

The product - which is available to all brokers - is available for 3 to 12 month loans secured against commercial and semi-commercial properties across England and Wales.

The product’s loan size range is £100,000 to £5 million+ and the maximum LTV is 65%, although access to higher LTVs may be granted with the provision of additional security.

Permitted uses for the product include acquisition of commercial investment property, refinancing of maturing commercial debt, working capital for the business and light property refurbishment.

All of Funding 365’s products can be viewed on their website at www.funding-365.com/products
Funding 365 Managing Director Mike Strange comments, “We are very pleased to introduce this new rate reduction to ensure that Funding 365 products remain at the cutting edge of the bridging market. With residential investment products from 0.65%pcm and our new commercial rates from 0.85%, we’re very much becoming the first choice bridging lender for many of our broker partners."

Calum Waite

February 2016

Funding 365 expands team with new Underwriter

Bridging lender Funding 365 today welcomes another Underwriter to its team to enable it to continue providing its fast, bespoke service despite a huge increase in enquiries in 2016.

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Bridging lender Funding 365 today welcomes another Underwriter to its team to enable it to continue providing its fast, bespoke service despite a huge increase in enquiries in 2016.

Calum Waite is a Business Economics graduate with a unique combination of experience in mortgage underwriting, the building trade and property refurbishment.

Previously Calum worked at Gopher Money where his responsibilities included managing all property valuations and improving servicing operations.

Calum comments, “I’m thrilled to be joining Funding 365’s underwriting team and to assist in its growth. It’s really exciting to be part of such a dynamic company in this fast paced industry.”

Funding 365 Managing Director, Mike Strange comments, “Calum will add further depth to our underwriting team which will ensure that our high standards of service are maintained for our broker partners.”

Bridging Loan Directory

February 2016

Funding 365 added to Bridging Loan Directory

Funding 365 has this week become the latest bridging finance provider to join Bridging Loan Directory.

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Funding 365 added to Bridging Loan Directory

Funding 365 has this week become the latest bridging finance provider to join Bridging Loan Directory.

Established in 2013 by ex-investment bankers, Funding 365 is the fast-growing lender with integrity who’s shaking up the bridging industry.

Valued by its broker partners for its honest, highly-competitive products, friendly service and unparalleled processing speed, Funding 365 provides 3 to 12 month bridging loans secured against residential investment and commercial properties across England and Wales.

Interest rates start at just 0.65% per month for residential properties and 0.99% for commercial properties, with no mortgage acceptance fees, exit fees or early repayment fees.

Visit www.bridgingloandirectory.co.uk to find out more.

Funding 365 Marketing Director, Laura Kendall comments, “Funding 365 had a hugely successful 2015 and we’re confident that the added exposure from Bridging Loan Directory will help us grow our market share even further in 2016. We look forward to developing relationships with even more brokers who believe that getting fair, competitive loans for their bridging clients is their top priority.”

Dawn Trustam

November 2015

Funding 365 Reveals New Business Development Manager

Fast bridging lender Funding 365 has this week expanded its team with the appointment of Dawn Trustam as Business Development Manager...

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Funding 365 Reveals New Business Development Manager

Fast bridging lender Funding 365 has this week expanded its team with the appointment of Dawn Trustam as Business Development Manager.

Dawn’s career spans 2 decades in mortgages and bridging at firms including Shawbrook Bank, Barclays Bank, Commercial First Mortgages and Mortgages for Business.

Her priorities are to deepen Funding 365’s relationships with its existing broker partners as well as introduce new bridging brokers to its panel.

Funding 365 Director, Mike Strange comments, “We’re delighted to be welcoming Dawn to the Funding 365 team. We’ve spent the past year developing Funding 365’s products with our broker partners and we’re confident that we have an unparalleled proposition - honest bridging loans from 0.65%pcm at a speed that cannot be beaten. Now with our team in place we’re ready to service all of the brokers who believe that getting fair, competitive loans for their bridging clients is their top priority.”

Funding 365 launches new 0.65%pcm Prime product

October 2015

Funding 365 launches new 0.65%pcm Prime product

Fast bridging lender Funding 365 has today announced a new Prime residential bridging loan product that carries a low monthly interest rate of 0.65%.

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Funding 365 launches new 0.65%pcm Prime product

The Prime product is aimed at property investors throughout England and Wales looking to purchase or raise funding against a residential investment property in a short timeframe.

The product has no exit fees or early repayment charges and is available up to £2million at a 50% loan to value limit. Funding 365 will pay introducers procuration fees of between 1.5% - 1.75% on eligible loans.

Further product information can be found at www.funding-365.com

Funding 365 Director, Mike Strange comments, “We are very pleased to announce the introduction of our Prime product to the market. This product will allow borrowers to access one of the lowest rates available in the bridging market without having to make any sacrifice in terms of speed of execution.

Given that this Prime product complements our Commercial product which offers a market leading interest rate of 0.99%pcm, we believe that our broker partners can now view us as not only the fastest bridging provider in the UK, but also amongst the cheapest.”

July 2015

AOBP Lender Bulletin: How can we improve the bridging industry?

I think it is fair to say that everyone involved in bridging finance would view the progress of the industry over the last 24 months with some satisfaction and pride...

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AOBP Lender Bulletin: How can we improve the bridging industry?

I think it is fair to say that everyone involved in bridging finance would view the progress of the industry over the last 24 months with some satisfaction and pride.  We have seen loan volumes double over this period, interest rates converging closer to mainstream rates and an ongoing professionalisation of the offering and practices across the industry.

However, instead of resting on our laurels, I believe that it is essential that we all continue to analyse the industry, to agree what could be improved and to execute these changes as rapidly as possible.

Some of these changes should improve the perception of the bridging industry.  Other changes may reduce the likelihood of regulatory intervention, which - without ongoing change and removal of some of the sharp practices we have all heard of - looks increasingly likely.

So, here are a few of the areas that I believe that all bridging industry participants should be aware of and continually work to improve:

1.    Efficient conveyancing

Borrowers are all too often let down by the lawyers they choose to assist them, as they do not always act with the speed that bridging finance typically requires.  An ideal solution could be that the key industry associations (AOBP, NACFB, ASTL) agree and publish a list of vetted law firms which lenders / introducers can point borrowers towards.

2.    Transparency

I believe that the procuration fees paid by lenders to introducers should be fully and clearly disclosed to borrowers.  This is already the case in the regulated mortgage industry and is a practice that should be universally adopted.  The lack of this information provides a borrower with an incomplete picture regarding whether his introducer is truly competitive and acting purely in the borrower’s best interest.  Where this doubt exists, borrowers will never truly trust the introducer or the lender, which clearly does not help promote growth of our industry.

3.    The best deal for the borrower

The objective for all should be to ensure that borrowers get the best possible bridging finance for the situation in question.  I believe that this can only be achieved if introducers approach multiple lenders to request their best possible terms.  It is not clear to me that the borrower gets the best offer where an introducer simply obtains one loan proposal (from the lender who pays him the best proc fee perhaps - call me cynical).  Some introducers in the market are satisfied with simply getting one loan quote and presenting this as the “best”.  Given that Funding 365’s interest rates are cheaper than almost all of the non-bank bridging companies, unless you ask for a quote from us (amongst other quotes) – you truly don’t know if you have the best proposal or not.

If we all pull towards achieving the above, the result will be better execution of bridging loans, lower levels of regulatory concern and most importantly, the best overall deal for borrowers.  This fact pattern should ensure that the bridging finance industry continues to thrive and expand.

Mike Strange
Director, Funding 365 Limited
michael.strange@funding-365.com
 

April 2015

Funding 365 increases lending power with securitisation financing

Bridging finance provider Funding 365 has this week signed a deal with an established UK bank for a substantial 8-figure securitisation financing facility...

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Funding 365 increases lending power with securitisation financing

Bridging finance provider Funding 365 has this week signed a deal with an established UK bank for a substantial 8-figure securitisation financing facility.

The facility has been arranged as a flexible securitisation funding line leveraged against Funding 365’s own capital, which means that all lending decisions remain firmly within Funding 365’s control.

Funding 365 Director, Michael Strange comments, “Funding 365 has had an incredibly successful 18 months and all signs point towards exponential growth this year. Signing up this securitisation funding line - where all credit control remains with our directors - allows us to continue providing the professional and speedy service our partners have come to expect from us."

January 2015

Funding 365 appoints new underwriter

Bridging finance provider Funding 365 has appointed another experienced underwriter to add to its growing team...

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Funding 365 appoints new underwriter

Bridging finance provider Funding 365 has appointed another experienced underwriter to add to its growing team.

George Petrou brings with him 10 years’ experience in the mortgage industry, having previously worked in mortgage and credit underwriting at Zopa, Santander, Capstone Mortgages and Money Partners Loans.

Funding 365 Director, Michael Strange comments, “We are delighted to welcome George to the Funding 365 team. We’re confident that his wealth of experience and superior level of client servicing will enable us to continue providing our market-leading fast and personal service despite our incredible rate of growth.”

October 2014

Funding 365 completes £6.2m bridging loan in just 3 days

Bridge finance provider Funding 365 has this week completed a £6.2m commercial loan within just 3 business days of receipt of the application...

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Funding 365 completes £6.2m bridging loan in just 3 days

Bridge finance provider Funding 365 has this week completed a £6.2m commercial loan within just 3 business days of receipt of the application.

The loan is secured on a Thames-side building with the potential to be developed into a striking 20 storey residential development.  Funding 365 stepped in due to the last minute withdrawal of a well-known bridging lender who, despite having conducted 6 months of diligence, could not raise the funds to complete the loan.

The loan completion was time critical in nature given that the property was in receivership with an auction sale due to be completed within 3 business days.  Funding 365 transferred the loan proceeds to the solicitors within one day of agreeing terms with the borrower."

The loan successfully completed, allowing the borrower to remove the property from receivership and providing them with the requisite time to complete the development project.

Funding 365 Director, Michael Strange comments, “We are very pleased to be able to help a client retain ownership of their property and fulfill their vision of constructing a desirable residential building beside the Thames.  Whilst we are typically renowned for the speed at which we execute loans, this transaction raised the bar to a new level."

August 2014

Funding 365 slashes its commercial bridging rates to market leading levels

Specialist bridge finance provider Funding 365 has this week announced a dramatic reduction in its interest rates for commercial bridging loans...

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Funding 365 slashes its commercial bridging rates to market leading levels

Specialist bridge finance provider Funding 365 has this week announced a dramatic reduction in its interest rates for commercial bridging loans.  Funding 365 will now offer commercial bridging loans at a market leading interest rate starting at 0.99% per month.

Funding 365 Director, Michael Strange comments, “Funding 365 has built a reputation as being one of the fastest and most flexible bridge loan providers in the market, however, with today’s announcement we can now also be recognized as a low cost loan provider."

02 July 2014

London property - clear and present danger

We have previously written a detailed article about the risks that we currently see in the London property market. As an attention grabbing summary, we stated that there is a high chance that the London property market could see a price collapse – and that this collapse could be swift and dramatic.

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London property - clear and present danger

We have previously written a detailed article about the risks that we currently see in the London property market.  As an attention grabbing summary, we stated that there is a high chance that the London property market could see a price collapse – and that this collapse could be swift and dramatic.  To distill our analysis into a few bullet points, we stated:

  • The London property market is supported by (pre-dominantly) Asian investors (it certainly isn’t supported by the City’s investment bankers any longer!).
  • These investors are pre-dominantly investors who are either (a) looking for a safe home for their funds; (b) speculating in the market because prices are rising; or (c) long term buy to let investors.
  • Buy to let investment in Central London no longer makes any financial sense.  In real terms (after inflation) and after taxes and costs, most rental property does not generate a positive return (in other words, the investor is suffering a loss).
  • If interest rates rise:

    - UK based buy to let investors will almost certainly start to suffer increasing losses on London rental property due to higher mortgage payments.

    - The exchange rate between Sterling and Asian currencies will start to strengthen meaning that it becomes more expensive for Asian investors to purchase London property so continued high levels of investment are unlikely.
  • Finally, the cherry on the cake, the UK Government is raising taxes on foreign investors (capital gains are now applicable on foreign property owners who dispose of UK property) and potentially on domestic buy to let investors (a mansion tax is still being debated).

The problem that we were concerned about is fairly simple – should Asian investors start to pull out of London property and prices begin to fall, will this lead to an avalanche of other Asian investors heading for the exit (they are, to a significant degree, speculators after all)?

You do not need to have a PhD in financial economics to understand that a bubble gets inflated slowly, but bursts quickly.  The reason for this, as Warren Buffet says, is that confidence is gained one person at a time, but people panic together.  I’m also sure that we have all heard the financial adage “don’t panic, but if you are going to panic, panic before anyone else”.  Therefore, if you believe that the London property market is supported by foreign investors and speculators, then you should be very concerned about a sign of a slowdown as this could herald the point at which some (savvy) investors decide to offload their entire London property portfolio (and ring the bell to signify the top of the market).  Who is going to buy these properties that rent out for a loss when prices are slipping? Answer – no-one, the prices have to fall until the rental return makes sense.

Having written the previously mentioned article at the back end of 2013, I thought it would be interesting to see how the fact pattern has changed in mid-2014, and whether we think the tipping point is close.

Firstly – how are London property prices faring?  Badly, according to many news outlets – “asking prices fall 0.5% in June” according to Savills, while in July a RICS survey found that (by a majority of 10%) their surveyors thought that London prices would fall over the next three months.

Secondly – How is Sterling faring against key Asian currencies?  Very well (which is bad for London property).  The graph below shows how the exchange rate between Sterling and the Chinese Yuan has appreciated steadily from about 9.2 last summer to around 10.6 today.  What this means is that it is now about 15% more expensive for a Chinese person to buy a London property than it was a year ago just because of currency appreciation.  If you also take into consideration the 16% growth in London house prices during that period (according to Rightmove), it is actually over 30% more expensive.
 

Thirdly – are interest rates going to rise soon?  The consensus is now “yes, and sooner than expected”.  Interest rate increases this year are now perceived to be highly possible, if not probable.  The recent jump in UK inflation to 1.9% has further increased expectation of early rate rises.

So, in summary, if you believe that the London property market is supported by foreign investors (the evidence is overwhelming), that some of them will run for the hills when the market turns (the speculators will undoubtedly) and that the current interest rate / exchange rate dynamic will continue to make London less attractive as an investment and bring the tipping point closer – then you, like us, should worry.

Mike Strange
Director, Funding 365 Limited
michael.strange@funding-365.com

May 2014

The new bridging lender survival guide

As Funding 365 is now approaching its first anniversary it seems an appropriate time to reflect upon the various things that we’ve learnt over the past year. Clearly we have learnt a lot...

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The new bridging lender survival guide

As Funding 365 is now approaching its first anniversary it seems an appropriate time to reflect upon the various things that we’ve learnt over the past year.  Clearly we have learnt a lot... for example, the world remains big enough for airplanes to vanish without trace; Alex Ferguson is (probably literally) worth his weight in gold; the US Government has access to everything we say and write (although, after watching Enemy of the State in 1998, we already knew that).  Whilst all of these things are interesting, our first year in the bridging sector has also taught us some invaluable business lessons.

As we are a generous lot at Funding 365, we thought we would put these down to share with other new entrants to the bridging sector (or to any incumbents who may have found themselves suffering from the growing pains that are inevitable when part of a rapidly growing sector).

Below is the resulting Funding 365 survival guide for new bridging lenders.

1.    Know your competitive strength

When making your first steps into the bridging market it’s hard to know exactly what your strengths and weaknesses are compared to the incumbent lenders.  In the early days of Funding 365 we had several demoralising conversations with brokers (who shall remain nameless) where they said, “we have 100 lenders, we use about 5 - I don’t think we need another lender”.  Needless to say, within six months these same brokers were banging down our door because in actual fact they did need another lender; they needed one who offered super fast execution.

It became clear to us from that point forward that the Funding 365 set up (by luck more than by design, quite honestly) allowed us to offer significantly faster execution than that offered by other lenders in the market.  This was our competitive advantage and it has allowed us to capture a decent share of the market in our first year.

Your organisation may have a competitive advantage in being more aggressive on HMOs, or more attracted to properties in Scotland / Northern Ireland / ex-London & South East, or perhaps you’re happier with commercial property than other lenders.  You need to find out what your competitive advantage could be, focus on it, nurture it and market it.

2.    Understand your funding constraints and originate accordingly

Whilst there are a handful of banks operating in the bridging space, bridging lenders are predominantly privately-funded organisations.  Some organisations are funded by a few private individuals, some by accessing family offices and small investment funds and some have been bought out and funded by private equity sponsors.

Understanding your funding constraints is the single most important thing that any financial institution should worry about.  It’s not just about the quantum of potential funding that you have access to; it’s the quality of the funding and its flexibility that really matters.  For example, why did Northern Rock, Bradford & Bingley and HBOS all get into trouble?  If your answer is, “they were writing bad mortgages”, you would be wrong, massively wrong (and almost seven years after the start of the crisis, even broadsheet papers (excluding the FT) are still feeding the populace this nonsense).

Northern Rock et al. got into trouble because they did not have appropriate focus on their funding sources versus the liabilities they were incurring.   To be more specific, they had an over-reliance on the securitisation and covered bond market which, when these markets closed (due to losses arising on US sub-prime mortgage bonds), left them unable to fund their existing commitments to borrowers.  The proof that the mortgage quality was pretty good is contained in the fact that the Northern Rock ‘bad bank’ has been profitable ever since it was created (which confounded many journalists who bought into the myth of poor asset quality).

In the bridging sector, things are (thankfully) somewhat more straightforward.  You need to understand what your funders are happy for you to originate, where they will be flexible and where they will not, and the timescales that you will have to operate under to receive funding.

Since Funding 365’s funding is 100% controlled by its management team (who are also the credit committee), we can agree amongst ourselves whether we like a loan or not and therefore make decisions instantly (well, sometimes after a hot cup of coffee and a hotter debate).  We do not need to strictly adhere to a matrix of LTVs or live by mantras such as, “we will never bridge a bridge”.

Ideally, you should only attempt to originate loans that you know your funders will accept without debate.  If your funders delay approval of a particular loan or (as happens all too frequently) refuse to fund it at the last minute, this will sound a death knell for your relationship with the respective introducer and the borrower.  Given that this is a small industry, word travels quickly and this failure will soon be known by everyone in the market.

3.    Work with brokers who can be a long term partner

Our first year of business taught us that there are highly reputable and professional brokers / introducers / packagers (in Funding 365 we call them our ‘Broker Partners’) and those who are purely out for a fast buck and will not be a reliable long term business partner.  I like the saying, “you can shear a sheep many times but skin it only once”, which is a mantra that some brokers would do well to learn and live by.

How do you develop a relationship with a broker partner?  Like finding a wife / girlfriend, I am sure there are many ways to do this.  You could throw money at the problem (Russian style) by paying the highest proc fees in the market; you could wine, dine and charm your targets (French style); or you could just market your strengths and try to find a broker who is looking for a lender with this particular strength (let’s call this the match.com approach).

Whilst I don’t believe there are any shortcuts to achieving this particular objective, it is a fundamental one.  If you don’t garner strong broker partner relationships, you risk finding yourself used as a stalking horse and only able to execute deals that other lenders don’t want to touch.

4.    Ensure execution is stellar

Having targeted your strengths, lined up your funding and found your broker partners, it’s time to do what you said you could do.  For example, if you said that you could operate quickly, ensure that you are able to do so (and not just once or twice; every time).

Bridge lending is an industry where high volumes of proposals are received and loans need to be completed efficiently.  To ensure that you can execute efficiently you need to have a solid, scalable IT system as well as high quality, trustworthy staff.  If you’re a new lender, it’s important therefore to put in the investment into your systems and people upfront - the industry moves too rapidly for you to play catch-up.  

Ultimately, efficient execution requires focus, dedication, good systems and quality people.  If you have all of this in place you should be in a position to back up your words with action.  As our friends at Brightstar Financial said to us recently, “it’s nice to see a lender who can walk the walk, not just talk the talk”.  Efficient execution builds the bonds of trust and the foundations for repeat business.

So, the above, in a nutshell, outlines the four key areas that we believe a new bridge lender needs to get right to survive in this competitive market.  

The final (unwritten) rule is to try to have a bit of fun - there are plenty of characters in the industry and a lot of interesting stories.  Has anyone heard about the lender who tried to repossess a house, only to find that the borrower lived with his pet horse?  That’s a story for another time!

Mike Strange
Director, Funding 365 Limited
michael.strange@funding-365.com