Funding Circle launches bridging deal
It comes a year after extending the types of loan the platform offers retail investors to include property finance for small businesses which develop or invest in property.
Over the past 12 months investors have lent more than £60m on property loans including commercial mortgages, development and investment loans.
The new short-term loans can be used for: equity release against unencumbered properties; quick acquisitions of development sites, with the speed of execution allowing borrowers to negotiate discounts; and purchases where the developer wishes to optimise planning permission prior to refinancing onto a more traditional development finance package; refurbishment loans, following which borrowers will refinance onto traditional buy to let mortgages; and auction purchases.
Parik Chandra, property finance specialist at Funding Circle, said: “Since we extended the loans we offer to small businesses to include property finance a year ago, we have been inundated with demand from successful property professionals who continue to find it difficult to access finance from traditional sources.
“Being able to provide a bridging product means we now offer the full suite of commercial property products, providing the liquidity that the property market needs and supporting projects across Britain. A modern property market needs modern finance – finance that is fast, flexible and simple.”
Funding Circle matches businesses looking for short-term property finance directly with a range of investors.
Once an application for a loan has been approved, it is listed on the marketplace and funded by investors.
To be eligible, businesses must have a track record in property development, investment or trading.