What are the uses for a Bridging Loan?

As well as providing Construction Finance we also fund clients looking for Bridging Loans.

We have been involved in arranging and funding bridging loans since the late 1980’s, much of that time as a principle lender. We still offer this service to clients looking to raise money for business purposes.

A bridge is a short term loan usually taken over between 3 and 6 months but on occasion for periods up to 12 months. These loans can be funded very quickly some within a matter of days, with an instant decision available. The speed with which a bridging loan can be arranged can assist clients with a short term cash flow problem with their business, or if a large bill needs to be paid very quickly.

Bridging finance can also be used as an alternative to construction finance in certain circumstances. For example, if the project is a renovation with no structural work being carried out a bridge is potentially a viable option. A loan can be secured on the subject property or possibly on an existing investment property in your portfolio. The loan can be obtained quickly allowing you to complete the work and move on to the next project.

You may wish to purchase a new site to which will later be built on. As construction finance will take longer to arrange and the required capital might be locked in an existing project, a bridging loan could allow the purchase to be made and allow continuity of work in the future.

In most cases the interest for the bridging finance will be paid on completion of the term, generally by sale of the subject property. This allows you to borrow money without affecting your cashflow, giving you greater flexibility.

We can even offer your bridging loan in a similar way to building finance, so you only borrow the money when you need it, in stages. This allows you to have a facility for the amount you may need but only pay interest on the amount you have taken from us. A product such as this will allow you the comfort of knowing the funds are available but save you significantly on the amount of interest that has been accrued.

We have previously funded businesses that needed a fast injection of cash to complete purchase of property, paying of tax demands and to cover the costs of setting up equipment for a large contract.

Having had so many years experience in the industry we understand that a bridging loan needs to be arranged quickly and with a minimum of fuss, which is what we can and do deliver for you. To discuss your bridging requirements give us a call on 01492 879906.

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