Bob Hunt, chief executive of Paradigm Mortgage Services, said there were increasing opportunities in the sector, given the increasing level of competition among short-term lenders.

However, he cautioned that brokers need to educate themselves on short-term lending in order to provide the most appropriate deal for their client.

Hunt said: “We now operate in a marketplace where the mainstream lenders are not always able to accommodate the finance wants and needs of many potential clients.

“Liquidity is still not what we would wish. However, there are growing opportunities to secure finance through different routes and this has been made possible by the growing number of lenders operating in the short-term finance sector.

“Advisers are increasingly telling us that they are seeking such routes to finance for their clients.”

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He added: “We would urge any broker considering their client’s options in the short-term finance sector to ensure they do their homework given there are a growing range of opportunities. This is a market which requires know-how and expertise in order to secure the most appropriate deal for a client.”