Short Term Finance – An opportunity to „Add Value‟ to clients

Quick Facts – Bridging Finance (NW) Ltd.

• Part of Business Assistance (NW) Group Companies

• The only Private Finance House in Merseyside and North Wales.

• Based locally on Wirral, but lending nationally.

• Group Company Established in 1983.

• Commercial Finance Funding commenced in 2005

• Capital Backed by High Street Banks.

• Over £27m funding arranged in 2008/9.

• 61 deals funded in 2008/9.

• Main sponsors of Liverpool Cricket Competition from 2007-2014.

• Full members of „Association of Short Term Lenders‟ and Financial Ombudsman Service.

• Second Office Opened in February 2007 covering Lancashire / Lake District.

“Bridging Finance (NW) Ltd. specialises in providing short term funding

solutions to professional introducers‟ clients in the North West. We provide a

local service to the local professional market.”

Many Large Commercial Bridging Companies in Market – Why

are we genuinely different ?

• After independently arranging over £40m Bridging and Development

Loans from the total UK market over last three years we looked at all lenders

and assumed best practice.

•No sharp practice – changing of rates / monthly interest / additional facility fees /

profits on valuations and legal fees / exit fees / default interest. Local company

building a local reputation with NW professional community with a long term view.

•No credit committees / sales people / lengthy delays – deal direct with local

decision makers. Personal service makes a tangible difference in terms of flexibility

– your client is not ‘just another loan’ in national lender loan book.

•Total transparency on loan structure/rates/fees from day 1. No small print. Terms

issued same day. Repeat business key to our growth.

• Local professionals provide responsive service – Haworth & Gallagher /

Hillyer McKeown company solicitors.

What are our loan underwriting principles ?

• Loans secured on 1st Charges on Commercial / Residential Property

• Loans to Individuals, UK and Offshore Companies, Trusts and Pension Funds

• Loans up to 70% of Property Value and 100% with additional security

• Totally Non-Status – Track Record & Strong Accounts not req.

• Our primary consideration for case underwriting is the property we take as security

• Loans can be used for any purpose

• Loans for 4 weeks to 12 months. Typically 3-4 months.

• £25,500 to £500k Loan size per individual transaction. Larger loans by discussion.

• Rates from 1.25% pcm subject to LTV and property / transaction type

• Loan completion typically within 7-10 Days of enquiry date.

• No up front fees and simple and transparent process

High Street Bank or Bridging ?

Totally separate products for different purposes. We are not competing with

High Street Banks, rather complimenting their facilities. Bridging is a tool to provide

short term solutions and is not intended for longer term funds.

Bank Solutions Bridging Finance (NW) Solutions

Interest Charge Interest Charge

LTV against Purchase Cost LTV against Market Value

Require Track Record Track Record not required

Require Strong Accounts Accounts not required

Demonstrate Loan Repayment ‘Non Status’

Turnaround typically 4-6 weeks Turnaround Typically 7-10 Days

Satisfactory Credit Reference Credit Reference not required

‘Bridging often in place whilst Bank facilities arranged and criteria satisfied’

Who’s Clients do we Fund ?

When can Bridging be used ?

Multiple uses of short term funding beyond the traditional house chain breaking.

NW Professional practices are typically using our services for their clients for :

Residential / Commercial Property

Transactions

Probate / Inheritance Tax

Matrimonial

Corporate

Property Refurbishment / conversion prior to property in

mortgageable condition / retentions from surveyor or sites

without planning permission.

Residential / Commercial Property Transactions

Purchase of property at Auction or requiring fast completion

whilst long term funding arranged.

Purchase of property at under market value or distressed

sales.

Purchase of Investment property whilst leases arranged to

demonstrate debt servicing to clearing bank or lease extension.

Immediate Capital raising from existing property for multiple

purposes whilst long term funding arranged or property sold.

Avoid early redemption charges from mortgage lenders if

property being held for short periods or developers waiting for

sales from last development to complete.

Probate / Inheritance Tax

Owner of Property Deceased and beneficiaries cannot prove

income / poor credit history or require funds quickly.

Inheritance tax payable before probate granted and

Beneficiaries wish to release funds.

Bridging facility with interest roll up arranged with executors

and legal fees paid.

Probate granted, property sold for best possible price rather

rushed sale with additional capital gain exceeding finance

costs.

Short Term funding redeemed from sale proceeds.

Matrimonial

Divorce proceedings.

Client has equity in property that he/she wishes to release for

deposit on new property whilst matrimonial home sold.

Bridging Loan releases immediate capital for both parties

with interest roll up facility. Legal fees paid.

Property Sold and short term loan facility redeemed

Corporate

Satisfaction of Corporation Tax / Crown Debt whilst funds

arranged on long term basis or cash flow repays.

Immediate capital raising for cash flow injections / purchase

of stock / legal fees etc. if overdrafts cannot be extended.

IVA & Bankruptcy annulment / avoidance of repossession /

Pending receivership & administration – creditors paid.

Long term funding subsequently arranged.

Business Purchase / MBO‟s / MBI‟s – capital raising on existing

business balance sheet/directors assets whilst due diligence

carried out for long term funding package .

Corporate recovery / Phoenix business / corporate re-structure

funding .

Summary

This presentation has attempted to give an overview of the typical uses of short term

funding relevant to your clients, albeit the diversity and uses extend beyond this …..

“Bridging Finance (NW) Ltd. specialises in providing short term funding

solutions to professional introducers‟ clients in the North West. We provide a

local service to the local professional market.”

“UK short term funding market expected top grow from c. £1bn in 2007 to

£5bn in 2012 due to changes in finance market”

Thank you for your time and Questions ?