In order for individuals to start up a business or to develop a property by means of an investment they seek funding. The traditional route of finance is high street banks, however, since the financial crisis in 2008 banks have tightened their lending legislation and made it near to impossible for SME’s and individuals to gain funding. The Government has tried to counteract the bank’s lack of lending by introducing the Funding for Lending Scheme in July 2012. FLS allows banks and building societies to borrow from the Bank of England at lower than market rates for up to 4 years. The scheme aims to increase lending to businesses by lowering interest rates and increasing access to credit and has been extended to January 2015.
Further to the FLS, the Government has also introduced the Bank Referral Scheme. George Osborne unveiled the scheme earlier this year which proposed the compulsory referral of SMEs to alternative lenders by major banks, should they reject them for finance. This has boosted the use of alternative lenders as there is less red tape that borrowers have to go through in order to gain funding as there is less legislation. Wellesley & Co. is an alternative lender that offers a four hour response time from the borrower’s initial application to the ‘Offer Principle’ and then a fast turnaround to Credit Committee Approval. Wellesley & Co. specialise in secured lending, and consider loans where the borrowers’ assets provides tangible security over the loan. The loan applications are rigorously checked by the companies’ highly experienced Credit Committee, this ensures that all borrowers fit the Wellesley model and enables security for both the lender and borrower.
Wellesley & Co. understand the need for straightforward funding and the short turnaround time that is desired by borrowers. Wellesley typically offer loans between £1-10 million however, the companies’ minimum loan amount is in the £250,000 region. Wellesley loan statistics show that the company currently have 87 loans on the loan book with a weighted average loan to value rate of 64% and have a history of 117 successful loans made with no defaults.
If you are struggling to accrue financing for development or are interested in gaining a bridge loan, please get in touch with our UK based customer service team: 02070255183 or email: [email protected] to see if you could be part of the expanding Wellesley loan book.