Business loans harder to obtain
Budding Entrepreneurs and proprietors of established business enterprises are being forced to seek alternate means of raising finance, as access to traditional business loans become scarce.
According to one source, the negative effects of the credit crunch on the lending market are not just exclusive to the domestic arena and a large number of business loan providers have severely limited access to wide range of their commercial products.
As a result, many asset rich business institutions are turning to Bridging loans in order to quench their need for additional finance, which is reflected through reports of more than a 50% increase of this type of business over the last 6 months, by commercial finance brokers.
One commercial broker commented that the business finance sector was in the midst of a very interesting transitional period, whereby many businesses (regardless of status) would struggle to source a traditional business loan. As such, the less attractive option of Bridging finance is for many the only remaining alternative.
There has also been a noticeable increase in the number of businesses seeking relatively small sums of capital through the bridging loan medium. This trend goes very much against the grain of a typical bridging loan request and is in our opinion, further evidence of a vastly changing market place.
