Funding the bridging lenders, wholesale

20 June, 2021 | insight

A day at the Finance Professionals conference recently reconnected me with a bridging lender we’d previously discussed providing wholesale funding for. For most bridge lenders in the market, their loan book is built by their own funds or with funds from their immediate investor network – and this often has limits on the availability of funds for the continual growth of the loan book. Ideally, a lender can access the wholesale funding market for an institutional credit line, just as we’re advising on for this current bridge lender.

Our institutional funding network has remained in strong support of bridging and development lenders – as well as B2B lenders – as long as we can demonstrate a well managed and sensibly leveraged loan book. Ultimately no institution wants to be over-exposed, so we work with bridge lenders to help shape their loan book for the most attractive terms for wholesale funding.

Implicit in procuring an institutional funding line for any lender – whether that’s for a bridge lending, corporate lending, or another provider in the general lending space – is allowing for future growth beyond the initial credit line and considering how to address risk if the preferred facility is capped or rescinded in the future. Where we advise on these scenarios we look at options for a suitable restructuring of the loan book to make it possible to access more than a type of credit line. Ultimately it’s about future-proofing sustainable growth of the loan book.

For institutional and corporate advisory inquiries call or email us and we will arrange to meet and discuss your business further