Third-party external factors such as property chains and seller deadlines has topped a recent audit charting the top 10 most common causes of delays in completing short-term finance transactions.

The results come from research carried out by Brightstone Law’s audit of 200 short-term lending cases, which does not represent the whole of the market, but the law firm claims the data can be valued as representative.

The top 10 most common causes of delay were:

1. third-party external factors (for example, property chains, seller deadline)
2. lender red tape (for example, lack of empowerment at underwriting level, credit committee approvals, leaving issues identified early in the process until final credit approval stage)
3. borrower naivety/inexperience (for example, inexperienced borrowers unfamiliar with what a lender will require or expect in more complex development cases – simply unprepared to borrow)
4. borrower delay in funding initial costs and valuation fees
5. miscommunication by intermediary
6. title/legal issues requiring solution
7. borrower solicitor inefficiency
8. valuation provided late in the process, raising issues requiring legal and other investigation
9. change in terms/revised offers
10. use of third-party firms for ID verification

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