Brokers turn to specialist commercial lenders

New research from Lancashire Mortgage Corporation shows that brokers are increasingly looking to commercial and bridging loans to help them grow.

The survey asked brokers which areas of their business had performed well for them in the first half of 2013 – almost a third (30%) said bridging finance and a similar number (29%) said commercial finance.

According to the latest British Bankers’ Association (BBA) statistics, despite initiatives like the Funding for Lending Scheme (also known as FLS), across the industry as a whole lending by banks to SMEs continues to fall. As a result, many businesses are looking to specialist providers to fulfill their lending requirements and help their businesses prosper.

Brokers are increasingly optimistic about the opportunities this represents, with 45% of survey respondents saying commercial finance was something they would be focusing on in the next six months. Again, a similar number (42%) said they would be focusing on bridging loans.

Commenting on the research findings, Gary Bailey, Sales & Marketing Director, Lancashire Mortgage Corporation, said:

“Our research shows that specialist providers are continuing to plug the gap left by high street lenders.

“Many businesses are desperate for capital in order to help them grow – and brokers are responding to this by focusing on the provision of commercial and bridging finance from specialist lenders who have the appetite to lend.

“As businesses look to brokers to assist with sourcing commercial finance, there has been a corresponding increase in the confidence brokers are showing in the sector. When selecting a lending partner, it’s important brokers look for a well-established provider that is able to deliver the fast and flexible service they need in order to offer customers what they are looking for.”