What Is Bridging Finance?
Bridging finance has become more popular in the last few years with an increasing number of people taking advantage of the flexibility that it provides both in residential and commercial funding.
What is bridging finance?
In simple terms a bridging loan provides fast and flexible finance when time is of the essence providing borrowers with a fast cash injection which would otherwise not be available through more traditional finance routes.
There are 2 types of bridging loans:
(a) Closed bridge - The borrower has a set date when the loan will be repaid e.g. the borrower has already exchanged to sell a property and the completion date has been fixed. The sale of that property will repay the bridging loan.
(b) Open bridge - The borrower sets out a proposed exit plan to repay their loan but there is fixed deadline at outset. There will be a clear cut-off point that the loan has to be repaid by. A bridging loan is a short term loan (usually 12 months or less) although some lenders may provide finance for longer than 12 months that can be used by individuals and businesses for any purpose until more long term funding can be arranged, or they sell the property.
What are the main uses of bridging loans?
Bridging finance can be used in residential and commercial property transactions. Users of bridging finance range from home buyers, home builders, barn converters, landlords, property developers and investors.
Whether buying a property, building a property or raising funds for a refurbishment project, short term lending can be a viable option.
Bridging finance is also sometimes used by businesses in need of short-term funding e.g. to raise capital, meeting a business obligation or settling tax liabilities, it can help provide support in an emergency situation or allow a firm to take advantage of a business opportunity.
How do bridging loans work?
With a bridging loan what you get is quick finance. With a mortgage it could take two months before you can drawdown funds. With a bridging loan you could have finance in 5 to 7 days. In some cases quicker. In exceptionally time constrained situations bridging loans have been known to complete in 24 hours.
Our Bridging Finance Service
Special features of what we offer include:
- Bridging Finance from £25,000 to £10 million
- Term - From 1 to 36 months
- Interest roll up schemes
- Bridging finance for individuals, limited companies, sole traders and partnerships
- Whole of market service - we work directly with UK bridging companies
- Lowest Bridging Company Rates - Access to leading bridging finance deals
- Fast turnaround - speak to us today if you need to move quickly. 5 to 7 days possible.
To investigate bridging finance call our team on 0117 313 6058 or fill in our call back form.