Could Bridging Finance Help You?
Bridging Finance is an alternative form of secured borrowing typically utilised for transactions that require a fast turnaround also known as Short Term Lending.
Commercial Bridge
How does a bridge loan work?.
A commercial bridge can be the prime funding strategy when you are buying at auction, completion must take place swiftly, or where refurbishment works are required. Other reasons may be to bridge the gap between one commercial being sold and another being purchased, or finance required for a new business purchase.
Typical Terms
Below are typical uses for Short term lending
Auction Purchases
Business Purposes such as cash flow
2nd charge equity release
Below market value transactions
Land Acquisitions
Terms
Amount £50k – £25m
Loan to value upto 70% (100% if additional security is provided)
Arrangement fee 1%-2%
Term 3 – 24 months
Rate starting from 0.4%
Interest can serviced monthly or rolled up
Valuation varies on application
Security
1st legal charge over subject property/any additional security being offered
If Ltd co – Debenture (mandatory) potentially personal guarantees
