New comparison tool set to bring greater transparency to commercial loans
A businessman from Cannock has created a first-of-its-kind bridging loan comparison tool.
Gary Hemming, aged 34, commercial lending director at ABC Finance in Cannock, created the tool in order to make it easier and faster for individuals and businesses to compare bridging loans.
More than £730 million worth of bridging loans were taken out last year.
Often used in situations where businesses need to access funds quickly to pay bills or complete on investments, bridging loans have become an essential lifeline for many of the hundreds of businesses struggling to access the £330 billion of public funding made available through the Government’s Covid-19 loan and grant schemes.
Speaking about the new tool, Mr Hemming said: “One of the biggest criticisms of bridging loans has been how opaque the market is. With no way of quickly and effectively comparing offers without contacting multiple brokers and lenders, business have been subject to unscrupulous lenders able to charge above market lending rates or extortionate broker and administration fees.
“In one case I came across an owner who was unable to repay their loan when it fell due, who saw their monthly interest rate raise from one per cent to four alongside an unjustifiable £10,000 administration fee, which was charged monthly.
“I created the bridging loan comparison tool to eliminate this, allowing owners, directors and finance professionals to quickly assess all of their options within a matter of minutes.
“It works by drawing in data from the UK’s 30 most reputable bridging loan lenders in a similar way to personal loan comparison sites like Go Compare and Money Supermarket. There are no broker or upfront fees and loan applications can be processed on the same day meaning businesses can get the money they need, when they need it and at a competitive rate.”
The ABC Finance bridging loan comparison tool can be found at www.abcfinance.co.uk/bridging-loans and can be used to compare loans from £50,000 to £50,000,000 instantly. It is expected that the new tool will help be used by 5,000 people in its first year.
To find out more visit abcfinance.co.uk/bridging-loans
