What is a bridging loan?
Bridge loans can provide funding for any legitimate purpose over loan terms ranging from 1 day to 24 months. These are a short-term solution, which can be used for many purposes.
Some Potential Uses:
- Buying a bargain property at ‘below market value'
- Buying a property which is deemed ‘un-mortgageable’ and requires significant refurbishment.
- Buying a property at auction and needing funds quickly
- Broken chain
- Raising cash to buy a business, purchase stock or perhaps buy out a business partner
- Raising cash to pay a personal or business tax bill
- Temporary cash flow bridge
- Bridging for pre-planning purchases
Remember; Before securing a bridge loan it is important that you carefully consider your plans and be sure there is a suitable exit route available to pay off the Bridge. However, we can also help with your commercial exit route or assess if the plan you have for repaying the bridge is feasible.
benefits of Bridge Loans
Commercial bridge loans provide fast, short-term funding designed to "bridge" a temporary financing gap. Their primary benefits include rapid approval speeds, high borrowing limits, and the flexibility to secure time-sensitive deals, refurbish properties, or manage cash flow while securing permanent financing.
Lenders typically offer options like retained interest (where interest is rolled into the total loan amount rather than paid monthly), freeing up immediate operating cash flow
Funds are not restricted to just buying property. Businesses frequently use them for refinancing, extensive property refurbishments, or clearing sudden tax or supplier liabilities.
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