CHESTER law firm Hillyer McKeown has been appointed to the legal advisory panel of a new £20m fund, established to help growth-hungry SMEs and entrepreneurs beat the credit crunch.
The Short Term Business Finance Fund has been launched by Wirral-based Bridging Finance (NW) Ltd. It is offering short term loans of between £30,000 and £500,000 typically for up to six months, secured against commercial and residential property.
The fund managers expect it to appeal to healthy businesses which are feeling the squeeze from less liquidity in the banking sector and as a result may not be achieving their potential.
Hillyer McKeown has been selected alongside two other firms from across the North West to advise Bridging Finance (NW). More firms are expected to join the panel as the fund expands.
Steve Barber, director of Bridging Finance (NW), said: “At a time when other short term lenders are retreating from the market, we are expecting substantial interest in the fund from businesses and entrepreneurs who are asset rich but relatively cash poor. We have enjoyed a long term relationship with Hillyer McKeown and are delighted to appoint them to the panel.
“For those with capital tied up in bricks and mortar, bridging finance is an effective means of unlocking cash and facilitating growth quickly, whilst bank facilities are arranged.”
Phil McKeown, senior partner at Hillyer Mckeown, said: “We are delighted to have been chosen to provide the legal assistance to Bridging Finance (NW). This fund will help to inject liquidity into the property market and enable borrowers to access funds extremely quickly.
“As a growing business ourselves, we understand the importance of timely and accurate advice during times of expansion.
“Working with ourselves and Bridging Finance (NW) means these businesses will gain access to high level legal and financial support, ensuring they can move quickly, safe in the knowledge that they have experts on their side.”
Short term finance is traditionally associated with the property sector but is becoming increasingly popular in the wider market as one of the quickest and simplest ways of drawing down capital for a variety of purposes.
Typical uses include: purchasing properties at auction, property refurbishment, acquiring distressed sale assets, funding management buy-outs and acquisitions and raising capital for cash flow injections, tax liabilities and stock purchases.
Bridging Finance (NW) Ltd. was established by former management consultant Steve Barber in 2005 and has since arranged more than £40m of bridging and development loans across the North West and North Wales.