Fiduciam has announced that it completed more than £9m in bridging loans during this week alone and that it is also on target to close another £10m of loans before the end of April.

The pension fund owned bridging lender revealed the £9m of lending was principally in the north of England – at an average of 55% LTV with an average monthly interest rate of 0.70% per month.

Fiduciam suggested the LTVs it is lending against are “naturally more conservative” than before the coronavirus outbreak, but that because demand for short-term business credit is high, the lender was seeing a pipeline of work comparable to record highs.

There are “clear” operational challenges to complete transactions because of the lockdown, the bridging lender said, adding that it had been working collaboratively with other organisations and that most operational issues had been “successfully overcome”.

Fiduciam CEO, Johan Groothaert, commented: “We have seen many short-term lenders close their doors and this is a pity because it is today they are needed most, especially when lending to businesses.

“We are very concerned that the general lack of credit for SMEs will exacerbate the crisis – in fact it may be worse than the direct Covid-19 implications for many SMEs. 

“I am glad that Fiduciam’s diversified institutional funding model has proven to work during this crisis and we are grateful to our institutional partners for keeping their commitment to helping to fund small businesses and entrepreneurs in these difficult times.”

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