Brickflow reaches £47.6m in approved loans in first six months
Development finance search engine Brickflow has secured £47.6m in approved loans in its first six months, supporting the delivery of 220 units.
Launched on 30 October 2020, the digital platform connects borrowers and lenders and aims to address funding access issues.
Of the 220 units delivered, 208 were residential and 12 commercial; 15 borrowers have had loans approved, at an average of just under £3.2m per loan.
In its 2020 Housebuilders’ Survey, the Federation of Master Builders found respondents rated residential development lending conditions for small to medium enterprises (SMEs) at 1.98 out of 5, down from 2.15 the previous year. Brickflow was launched with the aim of helping stop this downward spiral.
The search engine has 26 lenders on its platfor, representing more than half of the UK development finance sector, and can complete the development loan process in six weeks, rather than the industry standard of six months.
The business reported that it has a 90%-plus conversion rate from heads of terms (HoTs) to credit approval.
Ian Humphreys (pictured), co-founder and head of lending at Brickflow, said: “Once they’ve completed a search, borrowers are invited to build a project appraisal on the platform and when completed, it’s published on Brickflow.
“Lenders that are the closest match are invited to review the appraisal, bid on the project and submit their best loan terms.
“Any and all lender feedback is shared with the borrower, along with additional information requests.
“Our process has been developed in consultation with our lenders, so once HoTs are received, borrowers are not normally required to provide further information to get through the credit approval stage.
“It means borrowers can move forward at speed and with confidence.”
He added: “There’s a single onboarding process, supported by online tools to build borrowers’ profiles and showcase their experience and projects.
“This information is only sent to lenders that match borrowers’ requirements, making it easier for lenders to find the projects that they want to fund, saving huge amounts of time for both parties.
“Our mission is to open up the market and empower borrowers and their advisers – offering them the quickest and easiest way to secure trusted finance.”