A NEW £20m short-term lending fund has been launched to help businesses during the credit crunch.

The Short Term Business Finance Fund has been set up by Wallasey-based Bridging Finance (NW), which provides bridging loans.

Bridging Finance (NW) is making loans of between £30,000 to £500,000 available to small to medium businesses, entrepreneurs and property professionals on Merseyside.

The fund, separate from Bridging Finance (NW)’s other funding streams, will offer loans for up to six months, secured against commercial and residential property.

Steven Barber, Bridging Finance (NW)’s, director said: “It’s not only struggling companies that are being affected by the credit crunch. Otherwise healthy businesses are feeling the squeeze from less liquidity in the banking sector, and as a result many are not achieving their potential.

“For those with capital tied up in bricks and mortar, bridging finance is an attractive means of unlocking cash and facilitating growth quickly, while bank facilities are arranged.”

He added: “At a time when other short-term lenders are retreating from the market, we are expecting substantial interest from businesses and entrepreneurs who are asset-rich but relatively cash poor.”