It’s apparent that businesses need to access finance but does the banks’ cautious lending approach, for whatever reasons, make businesses ‘take what they can get’.

The number of bridging loan providers has increased sharply and published statistics suggest that there has been an increase of 27% in the number of bridging loans taken out in the past twelve months. 

Our question is - is this necessarily good news?

By their very nature bridging loans are more expensive and provide lower loan to value ratios; the key feature of bridging loans is of course that there has to be a clear “exit strategy” in place, in other words both the borrower and the lender need to know exactly how the bridging loan is being repaid. In addition bridging loans are more expensive –interest rates of over 24% are not uncommon.

If a bridging loan is taken out, only to be renewed again and again it is a pretty expensive way of arranging business finance. On the other hand, bridging loans can be very flexible and very often there are fewer underwriting hoops to jump through. So clearly there is a market for this sort of finance but how big is this market – is it really so substantial?

Whether the market expansion is a function of real demand for bridging finance, or because bridging loans are used because the traditional business finance providers apply very restrictive underwriting criteria, we don’t know.

We are not against bridging loans per se, we know that very often there are better finance deals on the market – put simply if you approach the right lender with the right proposal and the right presentation: you can obtain the right finance for your business (right in every respect including loan to value ratios and interest rates)

If you are looking to assess all your options - get in touch. Our commercial finance partners have over 40 years’ experience in the market and have a strong panel of lenders waiting to assess your clients finance application. Don’t settle for second best - let us get the right finance for your business.

Whether your need is relatively straightforward or niche, perhaps even rather leftfield give us a call or drop an email to info@moneysolutionsuk.com outlining the details of your enquiry and we’ll do our best to find an appropriate solution or visit the dedicated commercial finance section on our website moneysolutionsuk.com/business

Consumers and Auto traders in the UK may be very interested to hear the recent comments made by a senior figure at a leading credit bureau and then consider their plans for the coming months.

A recent survey from Experian has revealed that more than half of automotive dealers have positive expectations for their used car sales and after-sales activities during the next year.

Despite 22% stating that a shortage of good quality used cars was the biggest challenge facing their business this year, 62% of dealerships predicted that their used car sales activities would grow in 2012. 

Just 38% of dealers expected new car sales volumes to increase in 2012. Nearly a quarter of dealers (23%) stated that selling vehicles profitably was the key challenge facing their business, while a further 17% stated that identifying and reaching suitable customers was their biggest problem.

More than half (55%) of dealers believed that they would grow their after-sales activity during 2012.

Alistair Scullion, managing director of Experian's Automotive business in the UK and Ireland, commented: "Our survey suggests that the sales environment for new cars continues to be a significant challenge, and dealers are adapting their businesses accordingly.

"Optimism around used car sales and after-sales activities is encouraging. It is clear that dealerships recognise that there are growth opportunities for those of them that can react quickly to changing market dynamics, while reaching customers with the right offer and fostering customer loyalty to keep them coming back to the dealership."

Car dealers have long been able to offer car finance facilities to customers but it is also possible to arrange your finance before you go out looking. This gives customers a potential benefit in knowing what they can afford and what type and value of vehicle before they go out and start looking at their dream purchase.

By using the integrated technology you can now get an instant online lending decision which removes the frustrating waiting times found with many finance providers. The loan is based on a customers own personal circumstances so they know that the deal will be tailored to give them the best rates possible depending on their situation.

Car finance rates can starts from only 7.9% APR on loans between £3k and £50k and a comparison of over 30 lenders takes place to make sure the customer gets the best possible finance deal. Buying a new car can be an emotional time so taking some of the worry out of how you are going to finance it is a positive consideration for buyers everywhere.

For more information visit Moneysolutionsuk/vehiclefinance