Great bridging companies have one thing in common: The speed with which they can get the funds to the borrower.
Many people think the answer to this question is finding one with the lowest interest rate, but what good is a low interest rate, if the funds don't make it to your bank account on time?
I founded Henley Finance in 2013, after years of being in the property industry and frustrated by the difficulty of finding a fair bridging finance company who could deliver what they promised. We do not work on a 'departmental' basis, rather 'total saturation'. We focus on one loan at a time, making sure that everyone is working harmoniously to bring the loan offer to completion time to a matter of days.
Many bridging finance companies claim that they achieve a quick loan offer to completion speed but there are a number of factors that will inhibit top performance. So if you are choosing a bridging finance company for your project, read my quick guide to steer clear of the pitfalls.
The Valuation
Most bridging finance companies like to commission their own valuation. Make sure you have clear timeframes and costing on this. Once the surveyor is instructed, he will liaise with you to find a time to suite you both. A week is not an unusual amount of time and many companies consider this as competitive. Some companies will accept Royal Institute of Chartered Surveyors' valuation, completed in the last three months, but this is considered increased risk so will place your interest rate that you will be paying in the higher bracket.
Once the report is written and submitted, it then goes back to the bridging finance company to the Underwriters who assess the viability and risk of the project.
Underwriting
This time varies hugely, with the trend of larger companies taking longer to complete this process as they have more decisions-makers who need to sign it off. My advice would be to keep in daily contact with the person/people that you are dealing with and make sure that your project is always at the top of the pile.
Legal work
Hopefully this will have begun when the valuer was instructed as time-consuming 'Anti-Money Laundering' checks will need to be carried out. Once your project has valued, then your contract is drawn up. The legal department needs to be flexible in terms of acceptable security. They will need to have a 'commercial' approach, driven by the desire to help you achieve your target.
Completion and drawdown
Finally, your loan has been approved and you can expect the funds in your bank account shortly and it has hopefully been a straightforward and seamless process.
If you require any further information on this or on bridging finance in general then please feel free to contact Richard Butler Creagh on the Henley Finance website. For the latest Henley Finance news, read the Richard Butler-Creagh blog. Connect with Richard Butler-Creagh on his Clippings page here.