COVID-19 and Structured Finance: How We’re Bouncing Back

2020, from a financial perspective, started out brightly. As an industry, we collectively saw some excellent results and growth, but nobody, not even the most pessimistic of financers, could have foreseen what the year was to bring.

Now, after a few long months, we are through the peak of the pandemic, but with that, there are new questions: what can we learn from the lockdown and, most importantly, how do we bounce back?

What Happened During The Lockdown

In an industry where we must source structured commercial finance, Brexit proved to be incredibly challenging. The new year, however, brought with it some much-needed normality. Sadly, of course, this wasn’t to last, despite January and February seeing superb results, with Zoopla reporting its strongest results in four years.

While that period may seem like a memory now thanks to COVID-19’s effect on international markets and the biggest decline for the construction industry since the financial crisis, it has provided opportunities for the industry to learn.

Structured finance has been afforded an opportunity to show that its alternative form of lending can survive and flourish in even the most volatile of markets.

How The Lockdown Proved The Industry Can Flourish

During the lockdown, the UK government thankfully allowed for some leniency to be applied to those working in the construction industry. From builders to valuers, the housing market was given as many opportunities as possible to not stagnate.

This meant that flexible lending such as ours was still in demand, albeit lower than pre-lockdown levels. While we felt this effect, the pandemic has shown alternative finance’s benefits: while old finance has struggled to adapt to the pressures put on the market, alternative structured finance has provided unique lending offerings irrespective of COVID-19.

This speaks volume for the health of the market in the long-term. The pandemic has highlighted the importance of technology in the industry, which, broadly, has been used to keep the industry developing during this time.

As we come out of the other end of this pandemic, it has certainly been tough. However, if we’re to look on the Brightside, it has highlighted the industry’s resilience, the importance of co-operation and how well it has incorporated technology.

Find Competitive Structured Finance Today

So, the pandemic has proven that, even in the toughest of times, our industry can survive. Now, the question isn’t whether if we can bounce-back, but how far this bounce-back can propel us forward.

For true specialists in sourcing structured commercial finance quickly, then contact us to see how we can help you today.

Article By Harry Hodell

June 1st, 2020

Harry is a Director of Pure Structured Finance and one of the founding members of its London office. He has a specialist lending background on structured investment facilities across all asset classes in UK and Europe.

See more articles by Harry

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