November 2019
By Mike Underwood, Sales Director at Bridging Vat
The short-term lending marketplace has continued to grow throughout 2019, with more specialist lenders entering the market, and existing lenders refining and expanding their current offerings. The market is not dominated by the securitization model anymore, which has allowed a new breed of lenders to thrive in a microeconomic environment, underpinned by a diversity of funding sources. In 2018, the total lending in the short-term market was more than £4bn, which attracts entrepreneurial and innovative solutions to clients’ funding requirements.
Quite simply put, there are more funding providers and products available than ever before.
Almost every day there is positive news in the industry press of large scale and multi-million pound loans being placed, and exceptional customer service and quick turn-arounds to support urgent clients. At Bridging Vat, we have witnessed this first hand, assisting clients with time-sensitive completion dates and substantial funding requirements. It is no surprise then to see the sector attract more and more talent, both on the lender side and the intermediary side. And with those new entrants to the sector, diversification and education are crucial to sustaining growth and expanding existing offerings.
Here at Bridging Vat, our view is that with a growing marketplace, and an increased amount of competent, aspirational brokers looking to support British businesses seeking finance, it is now more important than ever for there to be a focal point for the industry to set and maintain high standards. In our opinion, a strong reputable focal point can give many benefits to both lenders and intermediaries. These benefits include industry representation at Government level, which is especially important during times of change.
A focal point will allow a trusted source of reputable lenders and intermediaries to work together to adopt a code of ethics and provide a transparency of fees and charges that will give the industry greater respect and higher standards, ultimately benefiting the clients. In addition to these benefits, if the industry focal point can also provide education and compliance, then we will see professional standards continue to rise.
Earlier in the year, Bridging Vat were able to witness this in action, supporting the FIBA roundtable events with intermediaries at both Elstree and Gatwick. The brokers and intermediaries that attended these events were given invaluable compliance advice with regards to up-coming changes to the regulatory landscape, as well as getting the latest product and process information from lenders, which in my opinion gives them a competitive edge over other brokers, who just don’t know the full range of solutions and products available to potential clients.
Bridging Vat are a proud partner of FIBA and will continue to support it in being the main focus point for an ever growing industry, as well as providing education and first class support in servicing its members’ clients funding requirements.