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2008 crash not so bad for alternative finance

2008 crash not so bad for alternative finance

Monday 17 June 2019

2008 crash not so bad for alternative finance


While traditional lenders have 'notably reduced appetite' for lending since the financial crisis of 2008, alternative finance providers, such as Sancus, say they have grown significantly in both 'the volume' and 'value of financed transactions'.

The growth has not come as a surprise to those familiar with the industry, according to Sancus, with borrowers finding the alternative finance model customer centric with efficient processes and decision making appealing to the target market of frustrated entrepreneurs and developers.

Matt Watson, the Managing Director of Sancus in Guernsey, said: "Often referred to as bridging lenders, alternative finance providers tend to be more flexible with the capacity and discretion to consider lending against a range of assets that would not necessarily suit the more rigid appetite of high street banks.

"These security items may include various forms of standard or non-standard residential or commercial property, land or other tangible assets such as an investment portfolio.

"Bridging loans may be useful in a number of circumstances but often the speed and simplicity of alternative finance is utilised to facilitate a time critical purchase of an asset, pending the ultimate refinance via a traditional lender once they have finalised their requirements. Borrowers may also use bridging providers for a number of other reasons, including property refurbishment, development or equity release."

Mr Watson added that Sancus always aimed to reduce the risk of their lending from the outset, and go about this by considering a number of factors. 

"Our model is a solid mix of being innovative and nimble from a procedural perspective but underpinned by an old fashioned relationship approach, with Sancus’ local presenceand local decision making helping us to get this right. We work with our Borrowers to provide the most efficient and suitable lending solution possible. At our core, we are a relationship based business and we often work with our clients more than once. Our senior team in Guernsey have lived here for many years and have homes and young families themselves, so our clients always know exactly who they are dealing with."

Pictured top: Matt Watson. 

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