This shift is being driven by several factors, including stricter regulatory requirements and the evolving needs of borrowers.

More recent disruptions, such as the COVID-19 pandemic, rising inflation, and growing concerns around economic uncertainty, have intensified this trend. Mainstream lenders are now often shying away from what they consider riskier loans towards low-risk clients, leaving many struggling to gain access to traditional financing and capital-raising solutions. This includes high-net-worth clients who need rapid access to lending in order to finance strategic deals or capitalise on new opportunities.

The rise of bridging lenders

However, as banks today retreat from supporting clients and lending they deem to present a higher risk, others have stepped in to fill this gap in the market. This includes short-term bridging lenders which can offer innovative, flexible, and accessible solutions – particularly to those whose circumstances or needs do not fit the mould of mainstream banking.

Traditional banks are often ill-equipped or reticent to handle the speed and complexity that is often involved in these transactions, leading to delays and rejections, and even resulting in clients losing out on investment opportunities. By turning to lenders like Cohort Capital, these individuals can find solutions to short-term liquidity challenges or access funds quickly to buy assets.

There is clearly growing demand among individuals for capital raising and financing solutions from these non-bank lenders too. Research from EY, for example, suggests that more individuals are taking up bridging loans because of delays in the mortgage journey with traditional lenders – 39% of respondents to a 2023 survey stated this was their top reason for turning to lenders that can offer a more flexible, accessible, and rapid approach to financing. Furthermore, 62% of the survey’s respondents cited “speed of execution” as the most important consideration when looking for a bridging lender.

Fast and flexible lending

With the requirements for fast and flexible lending in mind, Cohort Capital is playing a pivotal role for a growing number of high-net-worth clients.

Quick decisions can be the difference between success and failure and the ability to evaluate and fund deals quickly is a significant advantage for clients requiring urgent liquidity or facing time-sensitive opportunities.

Unlike many lenders, Cohort Capital operates with internal capital, rather than external funding lines. This means decision-making is swift and can be carried out with certainty, often within a matter of days, positioning us as a reliable alternative for borrowers who feel underserved by conventional financial institutions.

Cohort Capital’s customised approach to risk assessment also means it can often fund projects that might be considered too unconventional or high-risk by traditional lenders. We do not believe in a one-size-fits-all approach and understand that no two projects are the same when it comes to property finance. In fact, we recently made headlines after completing an £18.2 million loan on a superyacht in just 48 hours, demonstrating our ability to deliver fast, reliable, and efficient lending.

By individually assessing each application and quickly approving funding in situations where traditional banks may not, we can provide reassurance to clients looking to secure financing without the constraints and delays banks and other mainstream institutions often incur. This can help individuals and businesses achieve their objectives within their desired timeframe.

If you have a client facing a tight deadline or seeking tailored financial support, speak to our team to find out how we could provide swift, flexible, and tailored funding to address their needs.