Merseyside-based Bridging Finance (NW) Ltd is celebrating one of its busiest periods ever after reporting a 132 per cent increase in lending volumes for the last quarter, compared with the same period last year.The short term lender said the figures, for the third quarter of 2009, reflect an increase in investors acquiring properties at auction as well as businesses turning to bridging loans in the face of a continued squeeze on bank lending.

Bridging Finance (NW) Ltd is the only private principal lender on Merseyside and launched its 20 million Short Term Business Finance fund in April 2009.

Steve Barber, director of Bridging Finance (NW) Ltd, said: The greatest increase in enquires has come as a result of distressed property sales requiring fast funding. Since January, property prices have been showing good value when measured on rental returns, but it wasnt until the summer that we saw the first major wave of new investors enter the fray.

This is a clear sign that investors, disillusioned with poor savings rates and heavy losses on other investments, are effectively calling the bottom of the market and attempting to capitalise on property bargains.

This, combined with the fact that average completion time for a commercial mortage has risen to 150 days, from just 85 days in 2007, means more property professionals to seek bridging finance to plug the gap.

The Short Term Business Finance Fund offers loans of between 30,000 and 500,000 secured against commercial and residential property.

One of the quickest and simplest ways of drawing down capital, bridging loans are traditionally used for a variety of purposes including: purchasing properties at auction, funding refurbishments, funding management buyouts and acquisitions as well as raising capital for cash flow injections, tax liabilities and stock purchases.

Steve Barber, Managing Director of Bridging Finance (NW) Ltd.

Based in Wallasey, Bridging Finance (NW) Ltd. was established by former management consultant Steve Barber in 2005 and has since arranged more than 40 million of bridging and development loans across the North West and North Wales.

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