Alternative Bridging: Bridging lenders take the lead on development finance

Alternative Bridging: Bridging lenders take the lead on development finance



Bridging finance providers are now taking the lead on development finance loans for under £5m, according to Alternative Bridging Corporation Limited..

Bridging finance providers are now taking the lead on development finance loans for under £5m, according to Alternative Bridging Corporation Limited.

The short term lender said such loans were previously the domain of high street banks but they are now reluctant to lend for speculative property projects unless for regional and national developers’ larger projects.

Alternative Bridging says this has opened the door for bridging lenders to enter the market.

Brian Rubins, Managing Director of Alternative Bridging, said the process was proving to be a learning curve for brokers and the key to success was knowing what information was needed.

“We provide comprehensive information on our website and are more than willing to provide tuition ‘on the job’ when it is needed,” said Brian.

“The maths is relatively simple: we will advance 65% of the gross development value (GDV) and this translates to between 80% and 90% of project cost.

“Some lenders call it stretched senior debt and others structured finance and charge extra fees or profit shares.

“However, to us, it is just our standard development finance package which is simpler to effect and easier to operate and usually cheaper for the client.”


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