The widespread effects of Coronavirus have not only affected people personally but have also impacted financial and economic industries as well. The last two years have seen a dramatic shift in the way in which multiple sectors operate – from the real estate division to the mortgage industry, the pandemic has obstructed how all of us do business.
One industry that appeared to be thriving before the virus struck was the bridging loan sector. Bridging loans, like other forms of short-term financing, generally last between 1 and 24 months and are used to ‘bridge’ the gap between payments and expenses, or until a long-term source of funding is available.
2021 saw the industry gain popularity, raising its worth to a staggering £4 billion, while the number of lenders in the market continued to climb. While many businesses suffered a dramatic loss of earnings and profit in the past year, bridging loan companies appeared to gain more popularity than ever before.
How Did Bridging Loan Industries Survive The Impact of the Pandemic?
While the pressures of the pandemic took their toll on both employment and property transactions, a large majority of banks and mortgage firms halted their markets in order to reduce the risk of money lost. This created an opportunity for established bridging lenders to take on the role of providing support to clients who were left in between deals and exchanges.
The increasing demand for the loan industry in the last year has led to their services becoming more and more valuable to those in need of assistance. Due to each situation and circumstance being unique to the individual, specialist finance businesses have been able to tailor their services to suit each applicant’s personal and specific needs. As a result of this flexibility that bridging loan companies can offer, many loan applications may be authorised and deemed successful quickly once funding has been approved.
What’s The Future For Bridging Loan Companies Post-COVID?
With 2021 being such a successful year for bridging loan companies, it begs the question of whether or not these businesses will continue to thrive throughout the post-COVID recuperation period.
While the quantity of lenders entering the market has risen in recent years, the industry has become progressively more competitive as a result; with businesses like Finbri gaining success as a result of developing positive broker-customer service interactions. Companies such as this need to continue to be ready to adapt and change at a fast pace in order to remain successful, with the government’s guidelines on the virus changing frequently.
While so many companies are struggling to create a profit in the current financial climate, bridging loan sectors can provide a service that enables people to get the most out of their investments and assets. While the current popularity of the industry is flourishing, it’s certainly looking like the success is here to stay – with so many eager to complete transactions and trades throughout the endless lockdowns and social distancing rules we’re bound to. Specialised finance businesses, such as those in the bridging loans sector, certainly have a well-justified optimism for the years ahead.