TFG Capital joins Bridging Loan Directory
By Lucy Harley-McKeown -
Bridging and development finance lender TFG Capital Ltd (‘TFG’) has joined the Bridging Loan Directory.
TFG, which stands for ‘The Funding Gap’, lends throughout the UK, including Scotland and Ireland, and has been trading for over six years.
The firm is a niche lender, whose primary focus when appraising an application is the value of the security offered and not credit history, financials or proof of exit. Loans are offered from £50,000 to £4,000,000.
“Our offering is intended to be very straightforward,” says James Mortimore, TFG Managing Director. “Each loan application is appraised on the type and value of the security property(ies) offered and terms issued at a lending level we are comfortable against said security.”
Mortimore notes that TFG is able to offer a very streamlined and quick route to completion with this approach.
Ultimately, TFG has joined Bridging Loan Directory as it looks to widen its intermediary base to make its offering more widely known and available to borrowers.
“We’re now looking to take the next step forward in our growth,” says Mortimore. “We’re looking to grow our profile and our loan book exponentially over the next 24 months .”
The firm has continued to lend throughout the coronavirus crisis, with levels remaining constant throughout the year.
New enquiry levels picked up at the end of the 2020 and have continued to increase through to February, which has been TFG’s busiest month ever for both completions and enquiries.
The firm also completed a loan of £4.14m in February, its largest loan to date. The deal was a rapid turnaround requirement with the loan pushed through in six days from enquiry to completion, with more than 60 different properties within the portfolio securing the loan.
2020 was a difficult year for many businesses, with Covid-19 and Brexit effecting many in the market.
However, Mortimore says Brexit hasn’t been an issue that has phased TFG or effected its appetite to lend.
“People are still operating, the majority of businesses, other than in obvious sectors, have continued to trade and many are looking at growing, and cash flow requirements need satisfying.
The property market has continued to maintain strong levels and thus funding enquiries for acquisition, refinance and development have increased greatly since last summer. ”
“The reason we’re getting busier and busier is natural progression, as we have grown the sales team, along with an increasing, trusted introducer base and an ability to offer loans at reduced rates whilst maintaining our ability to complete loans very quickly.
Covid has meant that the opportunities for businesses to get more mainstream forms of funding has definitely tightened along with the time to get deals approved increasing,” Mortimore continues.
Mortimore predicts that the whole industry is going to be increasingly busy as mainstream sources of funding tighten up on credit.
Although not an issue right now, long-term headwinds of Brexit and Covid may be issues to keep an eye on in the future, as well as what Mortimore calls “rogue borrowers”.
TFG Capital has ambitious targets to double its loan book in 2021 and will be continuing to grow its sales and operation teams accordingly.
Lucy Harley-McKeown is a freelance journalist who specialises in business and finance. Her work has appeared in The Wall Street Journal, Yahoo Finance, Newsweek and The Lawyer Magazine. Find her on Twitter @LHM1.