Bridging Loans
Businesses use bridging loans when they need access to short-term liquidity. You will get a decision in principle within 24 hours and a fully credit backed offer within 72 hours of application.
Business Bridging Loans
You may use this type of business loan if your business needs to make a pressing big-ticket purchase or investment, but you don’t have the liquidity on hand to go ahead with the transaction. Businesses solve their liquidity problem by taking out a bridging loan to cover the cost of the transaction, purchase or asset they want to buy. The loan is repaid quite quickly, usually within a few months to around two years.
To repay the loan, you will either raise funds through your usual business activities, raise significant capital through another source (i.e., a buyout, acquisition, raising debt), or arrange to refinance the loan at term.
Bridging loan Example
Our client required £128,009 to undertake a heavy refurbishment on one of their rental properties which included a loft conversion, downstairs extension, and a renovation throughout. Within 2 weeks, we delivered a second charge bridging loan of £128,009 against their additional rental property at 37.8% loan-to-value, with interest retained at 0.75% over a 12-month term
Bridging Loans for every business
- To bridge the gap between the purchase and subsequent sale of a property
- Purchasing a buy-to-let investment property
- Expanding or developing a business project
- Obtaining a short term cash injection
- Refurbishing owned properties to increase the yield
Key Features
The foundations of bridging loans lie in property, but today their use in both business and residential contexts is far broader.
Business bridging loans are still commonly used to buy commercial property – this could be anything from a warehouse to an office building, retail space, hotels, leisure space or any other commercial property. Investments into these kinds of property will typically run to millions of pounds, and your business bridging loan match.
Bridging loans are a key way to finance acquisitions to bridge a potential gap until a borrower can secure permanent financing.
Bridging loans for businesses are not limited to purchasing a property. You can also use them to buy in something like machinery or infrastructure, pay off a debt, make an investment into something your business needs, cover a short-term cash flow issue or buy diverse assets. These loans can also be used to seize an unexpected opportunity or grow the business.
Rates from 0.90%
12 month loans
1st & 2nd charge loans
Loans from £50,000
Decision in 72 hours
Up to 75% Loan to value
Get in touch via phone, chat or email about your query, however complex it might be. We will try our best to say yes to you, instead of finding a reason to say no.