MFS leads the way for fast and tailored bridging solutions

By Bridging Loan Directory 3rd April 2018

Bridging has become a popular form of alternative finance for borrowers in need of fast capital to take advantage of short-term investment opportunities – gross annual lending reached a total of £4.7 billion in Q3 2017, up 10% on the same period in 2016. The expansion of the industry over the past decade has demonstrated the appetite among borrowers and intermediaries for access to finance outside of the traditional mainstream channels that are typically more burdened with red tape. Indeed, one of the most attractive features of bridging is that it ensures borrowers are able to overcome the drawn out and impersonal processes often faced when dealing with banks and mortgage providers.

Tailored finance solutions specific to the direct needs of the borrower is a leading advantage bridging has over high-street banks. Not only can flexible bridging lenders provide bespoke loans customised to the needs of the borrower, they can also deliver versatile and flexible loans regardless of how complicated a case may seem. Market Financial Solutions (MFS) has become renowned for its tailored bridging services, and some of their recent case studies reveal just how bridging can be used to seize short-term investment opportunities in a wide variety of different circumstances.

MFS supports small business to quickly take advantage of lucrative opportunities

Entrepreneurs and small companies seeking to complete a lucrative business opportunity can use bridging to secure the funds needed to close a deal on time. MFS recently provided a bridging facility to help a client complete a business expansion opportunity. This client intended to act on this opportunity by selling one of their buy-to-let properties, but a delay in the sale meant that they would not have access to the necessary funds in time. By working quickly and efficiently, MFS provided a tailored bridging solution that ensured the client did not miss out on the expansion opportunity, with exit provided upon the eventual sale of the existing buy-to-let property.

Key features of the bridging facility

Gross loan amount: £300,000
Combined market value of property portfolio: £2,500,000
65% LTV
Bridging loan transaction successfully completed ahead of the client deadline

MFS helps client clear existing VAT bill by releasing cash from property asset

Fast finance can also be used for those addressing personal finance issues, such as clearing existing debt through the release of cash from a property asset. Successfully selling a property can be a long process, made more complicated by the property chain. In one instance, a client of MFS needed to clear an existing VAT bill by selling a real estate asset. While there was strong market interest for the property, the client risked running past the VAT bill deadline due to the time it would take to complete the sale of the property. Using this asset as a security, MFS quickly provided the finance needed for the client to pay off their VAT bill, using the final sale of the property as the exit.

Key features of the bridging facility

Gross loan amount: £400,000
Combined market value of property portfolio: £1,500,000
LTV of under 50%
Bridging loan transaction successfully completed ahead of the client deadline

These two case studies demonstrate the flexibility of bridging in helping borrowers overcome specific financial circumstances. As a consequence of cases like these, the UK has firmly set the international benchmark when it comes to bridging, and markets across the world are starting to take note.

Responding to rising borrower appetite for alternative finance solutions, MFS recently became the first UK-based bridging lender to open a subsidiary office in Southeast Asia, launching Market Bridge Solutions (MBS) in Singapore. This move ensures borrowers and intermediaries in Singapore are able to take advantage of the alternative finance solutions that have currently been on offer in the UK.

Looking to the coming months and years, bridging will continue to play a vital role in making sure borrowers are able to access fast finance without the challenges traditionally posed by mainstream lenders. MFS’ expansion into Singapore reveals that there is now clear international demand for this source of alternative finance, and this represents the first of many future overseas expansions by MFS.