1. If you aren’t stock lending yet or issuing stock loans, you should seriously consider starting Some people may be concerned about making their securities available for loan to short-sellers. I am not going to get into the philosophical debate about the merits of short-selling here, but if you think that you joining the market is going to enable short sellers further, think again. There are already over $20 trillion of securities available for loan from a broad array of investors segments around the world, so unless you have a huge small-cap portfolio that’s new to the market, it’s unlikely you will be changing the supply/demand dynamics. What I can tell you for sure is that investors that are lending are capturing revenues you aren’t.
Read more →Has Covid 19 Changed The Bridging Lending Market The lockdown period has proven to be a trying period for the property sector. With the UK Government actively discouraging people from moving property, lenders, borrowers, agencies and brokers were placed in a precarious position. Short-term relief measures were introduced to support those affected, but the lack of certainty made it incredibly difficult to prepare for the future. Finally, it looks as though things could be returning back to relative normality. I say relative because we still do not know when social distancing measures will be lifted entirely. Some people are more confident than others, and while the number of cases is dropping, there is nothing to say a second outbreak is completely out of the equation.
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There are several ways to arrange property development finance and several types of lenders in the market. What is common to them all is their need to understand and to have confidence in the way that they are going to be paid back. So, lenders will ask a number of questions at application stage about how this is going to be achieved and they will form an opinion on the credibility of the borrower’s strategy. That opinion is no less important than all the other aspects of the loan application and if the lender does not believe in the strategy, then the loan will not be forthcoming. By definition, if you are engaging in a property development, it is only going to last as long
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What Are Spain Bridging Loans? Bridging loans for Spain are a specialist kind of loan designed solely for shorter term usage to provide a temporary cash flow solution or ‘bridge’ before additional permanent finance becomes available. The method for obtaining a bridging loan is straightforward and really versatile with a more flexible set of criteria than is usually required by most high street banks and mortgage lenders. Like a mortgage, a bridging loan is secured against your property. With bridging a realistic and viable exit will be required by the lender. How Do Bridging Loans for Spain Work? Bridging loans are frequently utilised as an answer to a temporary cash flow problem. A common example of this type of situation is when a person wishes to
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When in need of financing a company stands before the choice of whether to use debt or equity financing. Debt financing is when funds are borrowed from for example a bank or a friend, whilst equity financing is when an investor receives ownership interest in the company in exchange for funds or assets. Debt as well as equity can be structured in different ways, and the distinction may not always be fully clear, as the case may be with convertible debentures or loans where the interest rate or repayment obligation is correlated with the results or financial standing of the Company. Two of the main advantages of traditional debt financing are that the creditor does not get any direct influence over the business and that
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Submitting Your Bridging Loan or Development Finance Enquiry Every lender has a different way of assessing a deal and here at Platinum Global Bridging Finance we are no different. Development finance in particular is looked at differently than a straightforward bridging deal and the requirements are also different. Here we will explain what we require and just as importantly, what we don’t need as part of the initial assessment. Submitting your initial enquiry This is where there is a lot of confusion. We understand that brokers and borrowers want to send us as much information as possible but this isn’t necessary for the initial consideration of the deal. For a development finance deal we need: Full security address (location of security site) Full name of
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