BLOG: Old Fashioned Values, Modern Day Thinking
The number of lenders operating in the short term lending sector today numbers well into the hundreds.
Almost every week there is news of yet another new lender entering the sector and whilst it is becoming a crowded space, the winners in this are brokers and borrowers, because more choice means more chance of getting a deal funded.
One thing that has changed and perhaps not for the better, is how far bridging has moved away from its original premise.
The days of obtaining finance within days based on the asset seem a long, long time ago. Now, most bridging and development lenders underwrite each application as if it were a quasi-residential mortgage with credit checks/scores, income & expenditure checks, asset & liability statements, etc.
This is not to say it is wrong to do it like this, after all, every lender must underwrite a deal that offers them or their investors comfort and only they know what is acceptable for them to allow money to leave their account.
However, this new approach has moved away considerably from what the original premise of a bridging loan was meant to be which is a quick and simple, asset based finance transaction.
Here at Stretton Capital, we lend our own money. We don’t have investors, nor do we borrow from institutional funders.
What We Do
- We make decisions in house
- We lend up to 70% net of the OMV
- If we like the deal, we produce terms the same day
- If proceeding, we instruct valuation & legals the same day our terms are signed and returned
What We Don’t Do
- We don’t have convoluted application forms
- We don’t make decision by committee
- We don’t leave you waiting for a decision; If we like it, we will tell you immediately. If we don’t, we will also tell you straight away.
In summary, we try to make our approach to lending money as simple as we can. We base our lending on the asset, we always transparent with our fees and…We try to do all of this within a reasonable timescale as weeks, rather than months, is the order of the day for us.
We understand you have your pick of lenders, we just want to make it an easy decision for you to choose Stretton Capital the next time you have a project to fund.