"What tools does a broker have to help their clients beat the delays and maintain the ability to move quickly on new opportunities?"
Delays are a hot topic in the trade press at the moment, and rightly so as a number of factors are combining to clog up transactions however efficient the lender may be.
The rush of demand from customers wanting to take advantage of the limited period stamp duty holiday, or to overcome delays in the mainstream market, has come at a time when many businesses and services are operating at reduced capacity to accommodate Covid precautions. This is causing bottle necks throughout the process from valuations through to searches and conveyancing. But these problems can be avoided.
Recent reports have put the average time to complete a bridging loan at more than 50 days. Some cases will complete much faster than this of course, but this sort of time frame can prove frustrating for brokers. It can also be frustrating for property investors and the business community, many of whom rely on the ability to be fleet of foot to make the most of promising opportunities.
Whether it’s buying a property at auction or securing a refurb project in a desirable area or financing seasonal trade – in a competitive market, the ability to move quickly can make a tangible difference to investor returns and trading profits alike, and so delays in the system are more than just frustrating, they can also be financially damaging.
So, what tools does a broker have to help their clients beat the delays and maintain the ability to move quickly on new opportunities?
An alternative approach to navigating delays in the system is to avoid them altogether. There is a product available in the bridging market that enable a customer to arrange a funding facility, secured by a first or second charge on a commercial or residential property, which can then be deployed and repaid on multiple occasions as and when it is needed. This approach gives investors and traders access to liquidity on demand which will help them to get a head start in a competitive market and make the most of every opportunity.
At Alternative Bridging Corporation, we offer the Alternative Overdraft. Not only does it provide quick capital, but it also avoids expensive setting up charges each time a loan is needed or paying interest when the facility is dormant.
Delays can be frustrating, but they can also be avoided. If you have investor or commercial clients who want to retain the ability to move quickly, think about taking an alternative approach.