Property rich – cash rich

Time 6:39 am, November 12, 2008

CAR dealers often have one major asset. Their property.

Which is why many are turning to short-term finance to bridge the funding gap left by major lenders pulling out of the market.

Chris Baguley is MD of Bridging Finance Limited, a company that supplies bridging loans to businesses. He says demand has soared by a third.

‘Businesses are finding their piggy banks are empty and their cash tied up in property or failed investments. Many have found that commercial loans from their traditional lenders are becoming less available, and they are looking for alternatives.

One mans crisis is another’s opportunity, he continues. ‘There are still deals to be done, and savvy investors are picking up excellent property at fantastic prices.

‘We’re seeing more businesses come to us for quick, easy access to cash, so they can snap up deals.’

No wonder the short-term lending sector’s expected to grow so rapidly. Currently worth around £2 billion a year, the outlook for gross advances is expected to expand from £2.5 billion in 2005 – to £5.6 billion in 2010.

Car Dealer Magazine's avatar

Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

More stories...

Server 190