never stopped lending, even during the

As Market Financial Solutions gears up to build a £1.5bn loan book by the end of this year, its CEO Paresh Raja describes to Bridging & Commercial how the business has grown through crises and why optimism leads to success

Words by andreea dulgheru

It was a long, fortuitous and successful path that saw Paresh launch specialist finance lender Market Financial Solutions (MFS) almost 17 years ago. After realising that he was destined for a role in finance—rather than his dream of becoming a pilot—Paresh began working for one of the UK’s prime management consultancy firms in the 1990s. Here, he gained significant experience in restructuring businesses, after which he moved into the broking industry in 1999.

Later on, Paresh set up an independent investment group, where he managed a cumulative loan book of over £600m. It was during his time there that he spotted a gap in the market for facilitating finance—and one that he was keen to fill. “At the time, investors were struggling to access was a tough time for him and the company: “It was difficult to progress in a market that was in freefall, but we pushed through it and emerged stronger as the world recovered.”

MFS was able to navigate the difficult market and slowly, but steadily, continued to bolster its business and team, securing several funding lines from investors along the way. It also expanded into the Asian market in 2018 after opening its first office in Singapore, following a growing borrower appetite in the area for alternative funding and to take advantage of the region’s rapid rise as a global hub for finance.

“It was incredible to launch a business that, with everything going against it, succeeded,” states Paresh. “What’s more, seeing the signs of true acceptance from property investors for the specialist industry motivated me to push past any challenges that came my way.” funding quickly for their long-term investment plans. I saw there was a clear need for facilitating more complex financial transactions, so I wanted to use the knowledge I had built up to offer specialised products that could support borrowers who were running out of time to secure their properties.” And so, in 2006, MFS was born.

Only two years later, the great financial crisis hit the UK markets, causing havoc in the finance sector. Despite having been operating for a fairly short time, MFS’s specialist finance products made it succeed in a tumultuous market, as investors started looking for more niche options to fund their investments amid a lack of supply from high-street banks.

“The 2008 crash made it difficult to attain funding through the mainstream [providers] and, as the world became more complicated, it became clear more bespoke solutions would be needed. I wanted to support property investors with flexible, adaptive products that could be issued quickly, and be tailored to their circumstances,” explains Paresh.

Despite the lender being in a relatively fortunate position thanks to its focus, Paresh shares how it

In 2020, MFS was met with yet another global crisis: the Covid-19 pandemic. Just like most firms across the world, the specialist lender was forced to transition from its traditional office-based and clientfacing approach towards remote working during the UK lockdowns. Paresh reminisces about this time—yet another troublesome career moment for him. The pandemic accelerated MFS’s move to a new customer relationship management system, and saw the team adapt to the new ‘Zoom culture’ forced upon them.

“Throughout those difficult months, we had regular internal video calls to keep on top of everyone’s workflows, and we focused on supporting our team’s mental wellbeing where we could,” he recalls. “Much of MFS’s operations are underpinned by building relationships with brokers and other stakeholders, so it proved challenging to nurture these relationships during the lockdown years. However, while these periods were difficult, they reminded us of the importance of flexibility and adaptability—it’s vital to have strong foundations in place so you’re able to respond to the market as needed.”

The business went on to provide almost £100m of bridging loans throughout all the lockdowns, and launched a £60m dedicated Covid-19 recovery fund in August 2020 to ensure loans could be issued quickly to those at risk of a transaction deteriorating.

Despite these challenging years being followed by an extremely volatile market due to the consecutive Bank of England rate rises, political instability and a disastrous miniBudget, MFS never slowed down its activity. On the contrary—since 2021, the specialist finance provider has secured £1.6bn of funding from its institutional investors, and entered the BTL market at the start of 2022.

Paresh looks back at the firm’s achievements over the years with fondness: “I’m amazed that we’ve grown from a team of just three to over 100 staff—and we’re still expanding. I’m also proud that we opened an office in Asia, and that our BTL mortgage launch has gone from strength to strength,” he says. “This is the result of all the hard work my teams put in—their dedication has allowed us to secure hundreds of millions of pounds in institutional funding lines, and issue ever-larger loans to the market, the biggest of which being £18.4m delivered in 2023.”

When asked what the key to MFS’s success and longevity is, Paresh says it boils down to one thing: the company’s commitment to flexibility. “We’ve built up a culture of finding solutions to any challenge we come up against. We look for reasons to lend, as opposed to finding excuses not to, and we will never dismiss an enquiry without giving it a fair hearing,” he explains.

“Regardless of whatever short-term negative sentiment may be in the press, we focus on the long-term options. We’re optimists, and this optimism is underwritten by extreme organisation, in-depth knowledge of the market, and a commitment to our customers.”

The confidence in the market that Paresh is talking about derives straight from his personality and ethos, which he says has trickled down into the core values of the entire company.

“There is one quote from Mahatma Gandhi that has always stayed with me and guided my work ethic: ‘A man is but a product of his thoughts; what he thinks he becomes.’ I’m a firm believer that optimists are more likely to succeed—if you truly as some less reputable entrants have endangered the sector’s reputation when things have gone wrong. “When participants withdraw from the market or go out of business as a result of underestimating the challenges, it risks giving the impression of flippancy and, subsequently, investors may end up losing confidence in our wares,” warns Paresh. This risk is exactly why he values certainty, consistency and commitment—and why he makes sure his business’s operations are based on these values. “When we say yes, we mean it, and we never pull out of a deal once terms are agreed. We’ve never stopped lending, even during the most difficult economic conditions. Also, we’re constantly expanding our funding lines to ensure our deals stand on the most solid foundations possible.”

Despite the effects of macroeconomic difficulties and less reputable players on the market, Paresh is confident in MFS’s bright future. He is setting out big ambitions for the company; in addition to growing its loan book to £1.5bn and issuing £500m of BTL mortgages by the end of 2023, the lender is looking to further develop its proposition to meet market demand. In addition, the finance provider aims to enhance its digital usability through an app it is creating to improve the user experience and speed up believe better times lie ahead, they will. That is, of course, underpinned with knowledge, research and a clear vision of what you want to achieve.”

Having been part of it for many years, Paresh has seen the specialist finance industry evolve. He notes the numerous new lenders that have entered the market and a number of high-street names expanding into it have helped legitimise the offering to a certain extent and brought bridging to the front of investors’ minds.

While this bodes well for the overall market, this is a double-edged sword, the lending process. The company also plans to run its own in-person events this year to educate those in the market and network with potential partners to promote its services. These targets are set to help MFS reach its ultimate goal: becoming a leader in the sector and bringing specialist finance into the spotlight. “This market is still considered by many to be an alternative sub-sector of the lending landscape. I want MFS to be at the forefront of the industry and become a driving force for bringing bridging truly into the mainstream.”