Another bridging loan provider is to close its doors
Some more sad finance news this week as Cheval Bridging Finance Ltd, which also includes Cheval Commercial Finance Ltd is going to close its doors. The FSA regulated lender has been trading since 1995 and managed to survive the credit crunch. It is believed that having been unable to secure renewed funding from its main funder, Clydesdale Bank, Cheval has been left with no other option than to close down. It is believed that Clydesdale’s decision is not a negative reflection on Cheval, but purely due to policy changes made at the National Australia Bank that owns Clydesdale Bank. As a result Cheval is unable to take new enquiries and has already made a number of redundancies but are looking to try and secure alternative funding.
Back in September this year Tiuta, another bridging lender, was also placed into administration. 2012 has seen a number of bridging loan providers disappear, but it has also seen many new lenders enter a growing market.