Paxton Private Finance bid to raise £10 million

Robyn Hall

November 12, 2012

The company is aiming to increase its funding levels by up to £10m to meet proven demand in the bridging sector.

The injection of capital will support its existing bridging range which includes the Refurbishment and Conversion Bridging Loan, All England Second Charge Bridging Product and the Paxton Large Bridging Loan Product.

David Kinane, partner at Paxton Private Finance, said: “While we have seen an increase in lending by high street providers they will never be able to offer as fast and as flexible funding as the specialist bridging loan sector. Indeed there is currently significant demand from people who are looking to renovate properties or complete outstanding projects and are looking for the funding to do so.”

And Paxton partner Nick McLean said: “While we have provided over £6m worth of bridging lending via our suite of products over the last 18 months we are now looking to raise significantly more capital via our Paxton Secured Income Fund to be used to satisfy increasing borrower demand.”

Paxton was formed in 2010 as an independent principal lender which specialised in providing alternative, non-regulated, short-term finance solutions.

McLean said: “We know we have a sound proposition and we know it works well so we are ready to expand.

“We provide our brokers with quick decisions which they know they can trust. If we are not going to do a deal we will say no straight away which brokers appreciate because they can channel their efforts elsewhere.”

And Kinane added that the impersonal approach of mainstream banks is creating an opportunity for specialist lenders such as Paxton.

He said: “We meet all our borrowers face to face and build a relationship with them. We visit all the property sites personally at all stages of the project and continue to visit the client every month until the end of the bridging agreement to keep them focused on the development and repayment date.

“It is a return to old fashioned banking values and we get a great deal of satisfaction out of getting know our clients and helping people to invest in their communities.”

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