Of course, short term lenders charge a higher rate of interest than long term lenders and when you add their (normal) fees, valuation fee, legal costs etc, the cost of short term money over that period looks high.

I once raised £120,000 for a client for 24 hours.  It cost him £9,000 (to save you the maths that’s 2,737% p.a.) yet he was so delighted he took me out to lunch. Why?  Because he had just made £60,000 in that 24 hours.  It doesn’t matter how expensive the money is, if it helps secure a deal for a greater sum it’s worth it.  (Conversely if there is no profit in a deal it doesn’t matter how cheap the money is.)

So if you have clients who

  • Want to move quickly to buy a property at a bargain price
  • Need to pay tax to avoid paying a fine
  • Can buy stock at a knockdown price
  • Want to pay off an estranged partner or are trying to buy a property which needs renovation before it can be mortgaged

Short term lending may be the answer.

As a member of the Association of Bridging Professionals I’d be happy to help.