Businesses affected by speed of access to finances
British businesses report that they have missed investment opportunities due to the length of time it takes to obtain business finance.
Owen Gough, writing for SmallBusiness.co.uk in April 2017, looked at the reasons why the growth of the British economy has slowed to 0.3% in the first quarter of 2017. He reports that British businesses may not be growing as much as they could because of how long it takes to obtain a business loan. He says that 19% of businesses have missed at least one business opportunity over the last year because of limited finances.
Though technology has improved in the financial sector, this does not seem to have made the process of obtaining a loan quicker. The credit information company Experian has said that the slow process of a standard loan application has made 30% of business owners consider alternative finance.
One alternative where the loan process is quick is bridging finance. In some circumstances, bridging finance funds can be available in a matter of days. This makes a bridging loan ideal for short-term finance to provide the funds for a time sensitive business opportunity.
Bridging finance can be secured by property or other business assets. Loans can be closed with a fixed repayment date or have the flexibility of an open loan with no fixed repayment date. There will usually be no fees for repaying a loan early.
A bridging loan broker can provide bridging finance advice and arrange a suitable bridging loan.