The Bridging and Development Lenders Association (BDLA) has moved to reassure the short-term lending market after Market Financial Solutions confirmed it has applied to enter administration.
The specialist lender said it had made an application to the court following a temporary restriction on access to its everyday banking facilities.
The step, first reported by Bridging Soup on Saturday 21 February, was described as a measure to protect employees, investors and stakeholders while it works through an unexpected banking-related issue.
PROCEDURAL MATTER
Market Financial Solutions said the restriction arose from a procedural matter with its primary banking provider. It maintained that the underlying business remains asset-backed and operationally sound.
Founded in 2006, the lender has been an established presence in the bridging and commercial property finance market for almost 20 years. It reported cumulative lending of more than £1.2 billion over its lifetime, with its loan book reaching around £2.4 billion at its peak.
In an earlier statement, founder Paresh Raja described the situation as “an extremely difficult moment” and said administration would provide a structured and regulated framework in which the company and its assets can be protected.
BDLA RESPONSE
Responding to the development, Bridging and Development Lenders Association chief executive Adam Tyler (main picture, inset) says: “Our immediate thoughts are with the team at Market Financial Solutions, as well as the many brokers and borrowers who have built long-standing relationships with the firm over nearly two decades.
“Market Financial Solutions has been a prominent and active participant in our sector, and we are encouraged by the management team’s proactive steps to seek a structured environment through administration to protect the business’s assets and ensure the continuity of loan management and servicing.
“It is important to distinguish between a systemic industry issue and a specific operational challenge.”
“While any instance of a lender entering administration is significant, it is important to distinguish between a systemic industry issue and a specific operational challenge.”
The BDLA said it will continue to monitor the situation and remains committed to maintaining professionalism and stability across the bridging and development finance sector, adding that it stands ready to support members and the wider intermediary community in the period ahead.
Bridging Soup understands staff were informed of the administration application around !3:45 Saturday afternoon and instructed to attend the office as normal today.
