Bridging Loan Specialists

Commercial bridging finance is a short-term loan secured against a business property. Borrowers must have a clear repayment strategy, which could involve selling the property, raising funds from business operations, or refinancing into a longer-term loan like a commercial mortgage. These loans are ideal for businesses needing quick access to capital for various purposes, such as property purchases, renovations, or covering temporary cash flow issues.

Yes, a Limited (Ltd) company can obtain a bridging loan. If the company has assets with available equity, it can use those assets as security to secure bridging finance. This is a viable option for businesses needing quick capital for various purposes, such as property acquisition, refinancing, or business expansion.

When applying for a bridging loan, lenders will want to know the purpose of the loan. Additionally, you must provide security in the form of a residential property, commercial property, or land that the lender can use to secure the loan. This ensures that the loan is backed by valuable collateral, which can be sold or leveraged if necessary to repay the loan.

Bridging finance is a short-term loan designed to cover immediate financial gaps. It helps 'bridge the gap' in a company's finances, providing quick access to funds when needed urgently. Unlike mortgages, bridging loans can be secured rapidly, making them ideal for situations with critical time constraints, such as property purchases, business expansions, or urgent renovations. Borrowers use these loans until they can secure more permanent financing or sell the property.

A refinance exit is a strategy to repay a bridging loan by obtaining a traditional mortgage or another long-term loan. This allows borrowers to transition from short-term, higher-interest bridging finance to more stable, lower-interest financing. This is a common exit strategy, alongside selling the secured property, to ensure the bridging loan is repaid in full.

Yes, in many cases, your existing lender will allow a loan extension at least once to avoid default. Typically, there is a fee for an extension or rescheduling. These extended terms are usually more expensive and shorter than the original loan period. Always check the specific terms and conditions with your lender.

Yes, bridging loans are designed with flexibility in mind. Most do not impose additional exit fees for early repayment. Interest is charged only for the period the loan is outstanding, so paying it off early can save you money on interest. The primary motivation for early repayment is to minimize interest costs. Always review your loan agreement for any specific terms related to early repayment.

A common exit strategy for a bridging loan is refinancing to a mortgage. The lender will assess the feasibility of this plan before approval. Other exit strategies include selling the secured property or raising funds from other business operations. It’s crucial to have a clear and realistic exit plan when taking out a bridging loan to ensure timely repayment and avoid additional costs.