What is commercial bridging finance?
A commercial bridging loan is a form of commercial finance that consists of a short-term loan secured on a commercial property such as a warehouse, barn, industrial unit, or office. Bridging finance for businesses provides a temporary capital source to finance the purchase of a new property.
Typically, commercial bridging finance is secured against the value of the business’s current property or the new property being acquired. These loans usually have a term spanning from a few months to a year, providing businesses with sufficient time to finalise the sale of their existing property.
Apply for bridging finance for business
Our range of bridging finance lenders can provide dedicated bridging loans for planning, purchase/refinance, developer exit and refurbishment. Compare your funding options below or find out more about commercial bridging finance below.
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Check bridging loans for Planning, Purchase/Refinance, Developer Exit, and Refurbishment.
Benefits of Bridging Finance:
- Faster capital access in contrast to traditional financing.
- Lenders tend to offer more flexible terms for temporary loans.
- Easier to obtain: this funding option is more accessible compared to traditional loans and mortgages.
Need help? Call us on 0191 410 4776
How do commercial bridging loans work?
Bridging loans are short-term, interest-only loans that are usually arranged for up to 18 months (although some lenders offer longer terms).
During the term of the loan, interest is usually rolled into the loan and repaid at the end of term, or sooner if the loan is repaid early. As such, there are usually no monthly payments to make.
Bridging loans may come in a variety of different formats, for different uses. For example, bridging loans for planning are typically used by property investors to acquire land while waiting on the relevant approvals from local authorities. Meanwhile, bridging loans for purchase or refinance can be used to secure a new property quickly – before selling an existing property or waiting for the mortgage to expire.
Bridging loans for developer exit may be used to bridge the gap once a developer has completed a project, but needs time to sell the houses, while bridging loans for refurbishment may be used if a commercial property is being renovated.
What is bridging finance used for?
Bridging finance is typically used for businesses that need a working capital boost. Most often, bridging loans are issued with the purchase of a property in mind, though they can also be used to cover short-term cash flow challenges.
Although commercial bridging finance provides your business with immediate cash flow, interest rates are typically higher than other forms of commercial finance due to the short-term length of the agreement. In most cases, you’ll also have to offer collateral, though this could take the form of the property you’re looking to purchase.
Some sectors, such as construction, agriculture and manufacturing may require bridging finance more often than others – this is usually because of the large upfront costs associated with these industries.
Why choose Anglo Scottish for your bridging finance?
As an experienced bridging finance broker with access to a unique and varied selection of funding partners, Anglo Scottish is the perfect partner for your business’ bridging loan.
Our bridging finance lenders offer a wider range of lending terms than traditional banking institutions, meaning you could get access to lower interest rates and longer repayment schedules. It may also mean your business is eligible for bridging finance via one of our lenders, where you may have been deemed ineligible by a bank’s more rigid lending criteria.
At Anglo Scottish, we can support your bridging loan application by approaching our panel of lenders to make sure your business gets the best deal available.
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Secure your commercial bridging finance
Still unsure whether a commercial bridging loan is right for you? We offer a range of different forms of finance, from asset finance to commercial mortgages and more.
Our expert team are on hand to answer any questions you might have or advise on the best course of action for you and your business.
Contact us today at enquiries@angloscottishfinance.co.uk or give us a call on 0191 410 4776.