Every loan application Bridge Help receives for commercial bridging finance must go through our underwriting process.
With some simple steps taken by the broker and/or borrower, the underwriting process can be made smoother and faster.
The process is managed in house at Bridge Help by our experienced Underwriting Manager David Fielding, who is responsible for preparing the credit report for consideration by our credit board.
David explained: “Arguably the process is as much for our benefit as it is for the borrower’s. By assessing the full structure of the deal including the credit history of the borrower, ability to borrow, the asset, LTV, available collateral, PGs and exit strategy, rather than anything in isolation, gives the borrower the best chance of us agreeing to the deal as we know that it stacks up.”
Here David shares his top tips to ensure bridging loan funds are released as quickly as possible:
1. Correct documentation – Before your application process even begins, have all of the necessary documentation ready and make sure it is all up-to-date.
Having all the necessary paperwork in place will make the process simpler and faster.
These documents will include:
- A fully completed and signed copy of our application form.
- ID such as driving licence or passport. This must be valid with the correct address information.
- Address verification, a utility bill or bank statement within the last 3 months. The correspondence address must match the information on the application.
- Bank statements showing proof of earnings will be requested for any serviced loans.
- If the application is for a company, we ask for the last 3 years full sets of accounts where applicable.
2. Correctly completed assets and liabilities section on application form – All too often financial information on the application form does not correspond with bank statements or company accounts. We then have to turn detective and spend time unravelling the discrepancies, slowing down the process.
3. Be up front and honest – You should be prepared for our questions about current finances, credit score, and exit strategy.
We will look at clients with adverse, or poor credit ratings and CVLs, but we must have the backstory in advance. We pride ourselves on lending responsibly so please give us complete and accurate information upfront.
4. Exit plan – Now more than ever it is important to have a realistic repayment plan in place. Include a detailed plan with your application that outlines how the loan will be repaid.
5. Be contactable – Information can get overlooked and questions arise during the underwriting process so it’s important you are in regular contact with your client throughout the process to ensure minimal delay to the application. Additionally, make sure you’re available for a Zoom meeting to confirm your ID and answer any outstanding questions about the transaction, this typically happens part way through the underwriting process.
6. Patience – We appreciate everyone wants to get the deal across the line as quickly as possible and, whilst we have a process we need to follow, ensuring the information provided to us is correct, etc, can speed this up and get a positive outcome for everyone involved.
By taking David’s advice, borrowers can ensure that they are well-prepared for the underwriting process when it comes to bridging finance. By understanding the process and the criteria borrowers can increase their chances of obtaining the financing they need.
We know it can be a stressful process, that’s why every applicant is assigned a dedicated Business Development Manager who is on hand throughout the process to update and advise.
To find out more about the bridging finance options available with Bridge Help, give us a call on 0333 303 4681 and speak to a member of our team.