Commercial Bridging Loan
When you need a commercial bridging loan secured on commercial property or land we can arrange fast finance that can be used for any commercial purposes.
Uses include residential investment property purchases, commercial property purchase, refurbishment, development, stock/plant/machinery purchases, tax or simply to raise cashflow.
No deal is too complex, we're experts in packaging your needs in such a way that a lender can understand its value. All cases are considered on their merit and providing you've security and a realistic exit we're likely to be able to help.
We arrange commercial bridging loans for individuals, special purpose vehicles and businesses such as pubs, hotels, care homes, office blocks, equestrian centres for periods from 1 to 24 months.
Our Commercial Bridging Loan service
- Market-leading commercial property bridging loans from £26,000 to £250m
- Monthly interest rates from 0.75% pm
(Lower rates for £700,000+ loans or less than 50% LTV) - LTVs up to 65% on commercial property (up to 100% finance if additional collateral is available)
- Automated valuation options and dual legal representation
- No monthly payments with interest rolled-up options
- Terms up to 24 months
Commercial bridging loans are available on property in England, Scotland, Wales, Northern Ireland & Europe.
We provide a fast reliable service to help you get the commercial bridging finance you need at the best available rates.
We consider all types of credit history including non-status, bad or adverse and don't perform automated credit checks so there's no footprint from enquiring.
With incredible relationships with the UK's top lenders including specialist lenders, family offices and private investors, we can source the commercial bridging finance you require:
up to £300k loans in 3 days
up to £700k loans in 7 days
up to £250m from 14 days
Where your timeline is critical and short, we're confident we can get your commercial bridging finance in place. Get your best no obligation quote today.
Commercial Bridging Loan Lending Criteria
| Loan to value (LTV) | Up to 65% LTV maximum on commercial property Up to 80% LTV maximum on residential property (100% finance is possible with other assets in the background) |
| Loan term | 1 to 24 months |
| Loan amount | £26,000 up to £250m |
| Interest options | Rolled-up, retained or serviced |
| Interest types | 1st, 2nd & 3rd charges |
| Interest rates | From 0.75% |
| Decision | Immediate decision in principle (DiP/AiP) |
| Completion | 3 days to 2 weeks |
| Early repayment fees | None |
| Availability | Secured on assets in UK & Europe Individuals, Companies, SPVs No credit & adverse credit considered |
| Exit strategy | Sale or refinance |
A comprehensive guide to Commercial Bridging Loans
Commercial bridging loans are short-term financing solutions designed to provide temporary funding for businesses and individuals to bridge the gap between the purchase of a new property and the sale of an existing one.
This guide will cover various aspects of commercial bridging loans, including their purpose, eligibility criteria, typical loan terms, property suitability, features, advantages, and disadvantages.
Contents
What are Commercial Bridging Loans?
Commercial bridging loans are short-term financing solutions designed to quickly and temporarily cover the costs that come with acquiring a new commercial property. These loans are designed to bridge the gap between paying off an old loan (such as a mortgage) and acquiring the new property.
A commercial bridging loan is either a type of bridging loan that's secured on commercial property, or it could infer a bridging loan secured on residential property, but where the funds are being used for commercial purposes. In the latter example, the max LTV would be up to 80% and the loan would be eligible for a lower rate from 0.44% per month Vs. commercial property which attract interest rates from 0.75% per month.
What can they be used for?
Commercial bridging loans can be used for a variety of purposes. The most common reasons for obtaining a bridging loan include buying business premises, acquiring a new property, and making improvements to existing property.
Our commercial finance can be used for:
- Aid with business cashflow
- Purchase of new business/premises
- Broken property chain
- Redeem existing business loan, or charge on asset(s)
- Finance a development opportunity
- Separate investment opportunity
- Other debt consolidation
- End of term mortgage repayments
- Finance a Property refurbishment
Commercial property comes in a range of shapes and sizes – from office blocks, farms to factories, holiday parks, car parks to care homes. For those in the business of buying, selling and managing these types of property, commercial bridging loans are a vital way to quickly secure short-term finance which is secured against the borrower’s assets.
Typical Commercial Bridging Loan terms and criteria
A typical commercial bridging loan will be for around 3 to 12 months, but it can be as long as 24 months.
The amount of money that can be borrowed and the interest rates vary, however typical interest rates range from 0.65-2.5% per month. Borrowers should expect to pay a one-off arrangement fee of 1-2% of the loan amount. The loan can typically be secured against commercial property or a portfolio of properties.
Who uses a Commercial Bridging Loan?
Commercial bridging loans can be accessed by limited companies, individual borrowers, owners who have corporate structures set up, and trusts. To be eligible for a bridging loan, the borrower must have a good credit history and typically be able to prove typical income sources. A sound financial plan and an exit strategy may also be required to be eligible for these loans.
When are they most likely to be used?
Commercial bridging loans are most commonly used when a borrower needs funds quickly to purchase a property before they secure a longer-term loan. They can also be used to buy property in competitive markets, or complete a property transaction when a traditional loan would not be available.
What properties can Commercial Bridging Loans be used for?
Commercial bridging loans can be used for a variety of commercial property purchases or improvements.
These can include:
- purpose built industrial units
- warehouses, factories
- office blocks
- retail stores
- shops,
- restaurants
- hotels
- and other commercial properties.
Commercial Bridging Loan features
Bridging loans typically have the following features:
- They are short-term (usually between 3-12 months, but can be up to 24 months)
- They are fast to approve and can provide funds within a matter of days
- They are secured against existing property or a portfolio of properties
- They can provide higher loan to values compared to other forms of finance
Using a broker to arrange the best deal
Our approach is to review the whole of market and match the borrower with the best possible lender and the best possible product. This tailored process provides all parties with the peace of mind that that they are securing the best possible arrangement on the market.
Each lender will set its own criteria about the size of the loan they are prepared to offer, and the types of security they are willing to accept – so it’s important to do a thorough scan of the market and identify the best possible deals.
In addition, the application process for funding can be rigorous and complicated. If you use us, we will work with an underwriter to ensure that your proposal is as appealing as possible to the lender, therefore maximising the opportunities of a successful result.
We've successfully arranged £200m in financing over the last 12 months and have strong relationships with a huge range of lenders - we're highly likely will be able to secure a deal that is far more competitive than one you may have searched for yourself.
We're experienced financial experts who arrange commercial bridging loans for property owners, securing you the best deal from over 200 bridging loan providers including private investors and family offices.
Get expert assistance today, we're on hand to answer any questions about bridging loans.
Call our friendly team on 01202 612934, we're ready to help.
Can a limited company get a bridging loan?
Yes. All businesses, including companies and SPVs are eligible for a commercial bridge loan. The loan is secured against the assets of the company which is usually in the form of a charge against the property, in some cases however, business owners may also be required to personally guarantee the loan.
Can a business get a bridging loan?
Yes. Commercial bridge loans are available to businesses of all sizes, including limited companies and SPVs.
Who is eligible for a commercial bridge loan?
Not everyone is eligible for a commercial bridge loan. These loans are reserved for businesses such as companies or SPVs including:
- Private limited company – limited by shares (Ltd)
- Private limited company – limited by guarantee (LBG)
- Public limited company (PLC)
- Limited liability partnership (LLP)
How do you qualify for bridging?
Are commercial bridging loans based on income? No, bridging loans are not income-based. The qualification criteria for a bridging loan is based on the value of the property you wish to secure the debt against and having a viable exit. Whilst your credit score will also be taken into consideration it isn't the most important factor in the lender's decision making.
Are there any charges involved?
Yes, there are various fees associated with commercial bridge loans, including:
Broker fee – A fee for arranging the loan by the broker. This can range from 1% to 5%.
Lender facility fee - A fee for providing the lending facilitating by the lender. This can range from 0.5% to 5%.
Valuation fees - A fee for obtaining a valuation of your property, this can fluctuate depending on the property type and whether a in-person valuation is required or a desktop valuation is used, as a general rule of thumb factor in the valuation at 2% of the property price.
Lender legal costs - These are always paid by the borrower and start from £450 however as solicitors are paid by 6 minute increments, the more complex the deal the higher the costs.
CHAPS fee - This is a standard flat fee, currently at £35.
Exit fees - Some lenders charge an early exit fee, however this is becoming less common.
Redemption administration fee - These are usually circa £200 and are to pay for the administration duties involved in completing the loan such as removing the charge over the property.
How long will I have to repay my commercial bridge loan?
Bridge loans are short-term loans, which typically range from 3 months to 24 months. However, you can choose to repay your loan early without penalty if you wish, as long as you adhere to the terms and conditions of your loan agreement.
What type of interest rates can I expect with a commercial bridge loan?
Interest rates for commercial bridge loans typically range from 6-12% APR depending on the risk profile of your requirements. There are lender options who may be able to help you obtain a commercial bridge loan even if your credit score is adverse.
What kind of property can I use my commercial bridge loan for?
Commercial bridge loans can be used to purchase any type of business or commercial property.
