Bridging Finance is usually a type of short term residential or business loan. It’s best thought of as a temporary loan which gets you from A to B, until you can either clear the loan in full or secure a more permanent form of finance.
That’s where the ‘bridge’ idea comes in – finance to get you from one step to another.
A bridging loan differs from a regular-term loan because they are for a specific short-term purpose, whereas term loans often have more general commercial purposes. In reality, the speed of getting the cash in your account is the main difference. It can take weeks for some lenders to complete a term loan, but a bridging loan can be ready in 24–48 hours.
Lenders that offer bridging loans usually do so for the purchase and renovation of property – it's a form of property development finance. They can be both commercial and residential, and the works can be ground-up property developments or simply adding a bathroom to a flat.
You can also use bridging finance for other short-term commercial purposes, as long as you have a clear exit in place – although it depends what appetite the lender has for your plans.
If your business is flourishing and you are considering the purchase of another property or work space, a secured loan could be a great option for investing in a new building, by using the equity currently held in the business assets.
In the current economic climate, with banks becoming ever more cautious, many businesses (particularly SMEs) are finding their access to cash is increasingly restricted.
If you have equity in property, either commercial or residential, you can obtain a commercial secured loan for a variety of purposes, not just to finance a new work space or property.
We welcome any enquiry, even if you’ve been turned down by other lenders or brokers. With our access to the leading lenders in the market – not to mention our attention to detail – we are confident we will be able to find the right product for you. You can get a free initial meeting/consultation by calling today on 01483 531025 or emailing firstname.lastname@example.org leaving your contact number, and we will call you back.
Some forms of Bridging Finance and Commercial Lending advice are not regulated by the Financial Conduct Authority.