The function of the association of Short-term Lenders is to promote and protect the interests of its members. The association aimed to give confidence to all parties who do business with its members. All members of the association follow a strict code of conduct. The members are typically secured and bridging loan firms that offer mortgage and loans for short-terms. The traditional term is between six months and one year.

All short-terms lenders can be members of the association with a term up to twelve months on their loan. Loan on real property should be their main business or has a considerable part on their business. In order to become a member, the lender will write an application as prescribed by the Executive Committee with a fee. This executive determines requirements for memberships including full ownership details, brief trading history, and record of contested matters and litigation referred to the Financial Conduct Authority enforcement whether or not the FCA had taken any action against the applicant in the previous three years.

The CEO or Chief Executive Officer of the association will investigate all applications for membership after receiving them. After completing such investigation with satisfaction, the CEO will recommend the application to the membership for approval. In order to admit a lender as a new member, 70% of the members have to approve the application.

If a lender who wants to be a member cannot produce evidence of a one year trading history, the Executive Committee will invite such applicant to membership to become member for probationary basis for 12 months. The lender will still comply with the Association’s code of conduct and rules. If the lender completes successfully the probationary term, the committee will invite the applicant to become a full member of the association.

In their dealing with clients, all members should act in a professional manner with integrity and honesty. The member should disclose up front all fees and costs with no little print or misrepresentations of product offerings. The borrower must not perceive nonrefundable fees as excessive. If the lender does not plan to lend, he or she should not issue charge fees or term. The lender has to follow up customer’s complaints in a speedy and professional way.
All the members should advertise their services according to the relevant authorities’ legislation and any applicable advertising code. The members should maintain all licenses required to the relevant government body for operating businesses.