Business confidence soaring as loans increase significantly
By Bridging Loan Directory -
Capital raising on businesses through bridging loans has doubled in London and the South East, but the most significant rise was in the North West, which saw a 150 per cent increase in the number of loans completed, compared to the same period in 2013.
In addition, loan values for the first six months of 2014 are 320 per cent higher than the same period last year and 13 per cent higher than the whole of 2013.
Specialist short-term lender Bridging Finance, which compiled the figures, also found Scotland was another hotbed for bridging loans and predicts 2014 could see significant investment in the Yorkshire and Humber region.
“We’ve been talking about this financial recovery since 2012,” said Bridging Finance’s managing director, Chris Baguley. “But now the confidence in the recovery is being reflected in the huge appetite for businesses to invest in growth, and not just in London and the South East.
“The North West and Scotland are leading the way and the indications are Yorkshire and the Humber will soon follow suit.
“The reason for the significant increase in bridging loans can probably be put down to the speed in which they can be completed – in some cases less than 24 hours.
“It clearly demonstrates businesses are willing to invest right now, rather than wait for the sometimes lengthy process that occurs with the High Street lenders.
“Confidence in the market place and the overall economy means businesses want to capitalise on the confidence of consumers and companies alike.
“We’re finding that businesses are using bridging loans for a variety of reasons including raising capital, paying inheritance tax, updating or repairing vital equipment and business acquisitions.
“The cautious approach to the economic recovery appears to be over, which in turn is great news for the pace of the recovery, as investment means new jobs, an increased amount of profitable businesses and more tax revenue for the Government.”