Bridging lenders who provide development finance for residential developers whose projects have predicted sales of £2m or £3m will consider 65% of estimated sales revenue, suggests Alternative Bridging.
These figures are equal to 80 to 90% cost compared to high-street lenders who usually do not lend more than 60% of cost.
Brian Rubins (pictured), director at Alternative, said: “Bridging finance is now an alternative source of funding for commercial loans, and a place to go when other lenders are not readily accessible.”
Alternative also highlight that creating new banking relationships is not easy despite governmental support for small businesses.
Rubins added: “Alternative lenders are becoming part of the mainstream and brokers and borrowers will start recognising them as a first port of call and not where to go after all else has failed.”
