A recent report has shown that more than half of self-employed small business owners expect to use alternative financing in the future rather than traditional high street lenders. The report showed more than 60% of those surveyed will be raising finance within the next 36 months.
Demand for second charge lending is well placed to continue going from strength to strength over the next few years as mainstream lenders struggle to evolve to adequately support the thriving small business community.
A second charge is a loan that is secured against the residential property alongside the mainstream mortgage. They are quick to arrange and very cost effective.
The small business man is increasingly turning to alternative lending sources as a traditional re-mortgage becomes more difficult to secure.
One such small business owner in Surrey said, “a second charge loan secured on my main residence was so easy and quick to complete and the costs involved were very reasonable”. “The loan was very quick to complete, and I didn’t need a solicitor which saved a lot of money”.
High praise indeed, but it’s not surprising when on average a “clean case” can complete in less than 16 working days and this is what makes this form of lending so attractive.
Second charge lenders have been quick to recognise this gap in the market and have responded with new and innovative lending ideas which are aimed at small businesses.
Second charge loans have a vast array of uses, also over the past 3 years interest rates have fallen significantly making this form of lending very attractive.
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