Commercial Bridging Loan

Commercial bridging loans

Commercial bridging loans from £26k to £25m are available for any commercial use including 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 businesses such as pubs, hotels, care homes, office blocks, equestrian centres and individuals for periods of 3 to 24 months. 

 Apply online or arrange a call with our experts today and get our best rate no obligation quote on your commercial bridge loan.

Commercial Bridging Finance Lending Criteria

Loan to value (LTV) Up to 65% maximum 
Loan term 3 to 24 months
Loan amount £26,000 up to £25m
Interest options Rolled-up, retained or serviced
Interest rates From 0.75%
Decision Immediate decision in principle
Completion 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

What's a Commercial Bridging Loan?

Our commercial bridging loans help you access simple to arrange short-term finance that can be used for a variety of commercial purposes. in exactly the same way as a residential bridge these lines of credit are predominantly used to “bridge the gap” before a longer-term financial arrangement can be made.

Our Commercial Loans 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)
  • Development opportunity
  • Separate investment opportunity
  • Other debt consolidation
  • End of term mortgage repayments
  • Refurbishment

Commercial property comes in a range of shapes and sizes – from office blocks, farms to factories, 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.

When can commercial bridge loans be used for?

Commercial bridge loans are popular forms of finance for property developers who are looking to quickly purchase a property or land. The funds from the loan can be used flexibly, either as a deposit on the sale or to pay outright for the assets. One of the key benefits of commercial bridging finance is the speed with which it can be delivered – often within a matter of days.

Here are some typical examples of how this finance is employed:

Commercial Bridging Loans For Renovation Work

In cases where developers are looking to renovate and convert a commercial property which is in poor condition, a commercial bridging loan can be used to cover the cost of this work as well as the cost of the purchase. 

This is a popular option for developers who are looking to convert premises into modern business or residential space, for future rental or re-sale. The finance arrangements on offer typically provide up to one year to complete the building work. 

The same conditions apply to developers who will look to use commercial bridging to purchase greenfield or brownfield land with the aim of converting the space into housing, retail or business premises.  

Commercial Bridging Loans For Further Investment

Releasing equity within existing commercial premises can be a smart way to invest in other parts of the business, or to help raise funds. Commercial bridging loans can be used for working capital purposes which enable the purchase of business assets, plants and machinery when there is not the available time to find financing through other routes.

Commercial Bridging Loans For The Purchase Of Business Premises

Commercial bridging is commonly used by owners of commercial property who are looking to expand their portfolio and purchase further property or land. These spaces can then be used either to trade from themselves or as refurbishment projects to be rented out to future commercial tenants. In these scenarios, once derelict premises have been refurbished and rented out for example, its value is likely to rise, making a standard commercial mortgage an option for the long term.

Commercial Bridging Loans For Auction Purchases

Commercial property purchases at auction move far more quickly that those which follow the traditional sales model. For that reason, it’s vitally important for finance to be secured before the buyer enters the auction house, so that they can meet the 28-day deadline with is normally required by vendors at auction. 

Bridging loans are a great way to secure these purchases quickly and ensure a smooth sale at auction. 

Commercial Bridging Loans For Residential Property Purchases

Commercial property owners who are looking to buy residential property have the option of releasing equity within the business premises provide funding for the purchase. 

When time is of the essence and a fast sale is needed, a bridging loan can provide swift funds to make this happen – especially in situations where the buyers is under pressure from the seller to complete the purchase. 

Commercial Bridging Loans For Payment Of Debts

Commercial bridging finance can be a useful, short term way for borrower to secure funding to cover their debts. 

Examples of these scenarios include redemption of assets, repayments to creditors, halting of repossessions, prevention of business insolvency, replacing a previous bridging loan which is about to expire, end of term mortgage payments, tax payments, consolidation of debt and the redemption of an existing business loan.

So long as the lender can see that you can commit security to enable the loan to go ahead, then what you use it for is essentially up to you.

What is an exit strategy?

From the outset, it is important to identify and agree a clear exit strategy when applying for a commercial bridge loan. On first charge loans, the accepted methods for exit from the finance arrangement might include:

  • arranging another loan on the property which can be used to pay back the loan before that point at which it expires
  • arrangement the sale of the property to a buyer within an agreed timeframe

For second charge commercial bridge loans, suitable exit strategies might include:

  • the sale of another property owned by the developer
  • the sale of shares listed on the stock exchange
  • the sale of other investments
  • expected revenue from a third party source
  • arranging another loan on the property which can be used to pay back the loan before that point at which it expires

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.

Get expert assistance today. To find out the exact costs of a commercial bridging loan click here for a quote - it takes just 3 minutes!

Or feel free to call our friendly team on 01202 612934we're ready to help.

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