Commercial Bridging Finance

Commercial bridging finance is a short-term loan that helps businesses quickly access funds when they need to cover a temporary gap in financing. It's usually secured against a commercial property and is designed to keep things moving while longer-term funding is being arranged.

If you need help with commercial bridging finance, contact Infinite Finance London at 020 3813 7800 to secure flexible bridging finance for your business.

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What Is Commercial Bridging Finance?

Commercial bridging finance is a type of short-term loan designed to help businesses quickly access funds when they need them most. Typically secured against commercial property, these loans act as a "bridge" to cover financial gaps, such as buying a new property, releasing equity, or refinancing an existing loan.

Unlike traditional loans that can take weeks or months to complete, commercial bridging loans are known for their speed and flexibility. However, this convenience often comes with higher interest rates, so it's important to understand how they work before committing.

Get quick commercial bridging finance in London with flexible terms. Speak to our experienced brokers at 020 3813 7800 and bridge your financing gap with ease!

How Does Commercial Bridging Finance Work?

Here's a simple breakdown of how commercial bridging loans operate:

Fast Access to Funds

Bridging loans are usually completed in a matter of days or weeks, making them ideal when time is of the essence, such as purchasing a property at auction.

Secured Loan

The loan is secured against commercial property, meaning the property acts as collateral. This reduces risk for the lender and allows for quicker decision-making.

Interest Payments

Interest is typically charged monthly, but many lenders allow this to be rolled up, meaning it's paid in one go at the end of the term, rather than monthly.

Loan-to-Value (LTV)

Most lenders offer up to 65% of the property's open market value, though this may vary depending on your circumstances.

Short-Term Nature

These loans are meant to be short-term, often repaid within 12 months, though some terms can be longer. The key is having a clear exit strategy, like selling the property or switching to a long-term mortgage.

Commercial bridging finance offers a quick, flexible way to access funding when time is critical, but it's important to have a clear repayment plan and work with an experienced broker to get the right deal.

When Do Businesses Use Commercial Bridging Loans?

Commercial bridging loans are often used when businesses need fast, short-term funding to seize an opportunity or solve a temporary cash flow issue. They're especially useful in situations where traditional finance would take too long or isn't flexible enough.

Here are common scenarios where businesses turn to commercial bridging finance:

• Buying Commercial Property Quickly: Ideal when you need to secure a property fast, especially in competitive markets or at auctions.
• Bridging the Gap Before Long-Term Finance: Used while waiting for a commercial loan or another long-term loan to be approved.
• Refinancing an Existing Loan: Helps pay off a maturing loan or restructure debt while arranging a more permanent solution.
• Releasing Equity from Property: Unlock funds tied up in commercial property to reinvest in your business or cover urgent expenses.
• Business Expansion or Investment: Useful for funding new projects or opportunities that require quick access to capital.

In short, commercial bridging loans give businesses the speed and flexibility to move forward when time is critical and long-term funding isn't yet in place.

Types of Commercial Bridging Finance

Commercial bridging finance comes in different forms, each designed to suit specific business needs and property situations. Understanding these types can help you choose the best solution when you need quick, short-term funding for your commercial property projects.

Here's a simple guide to the common types of commercial bridging loans:

1. Open Bridging Loans

These loans offer flexibility because there's no fixed repayment date. They're ideal if you're waiting to sell or refinance a property but don't know exactly when that will happen. This type suits borrowers needing short-term funding without a set timeline.

2. Closed Bridging Loans

Closed bridging loans have a fixed repayment date, often linked to a specific event like a property sale. This provides certainty for both you and the lender about when the loan will be repaid.

3. First Charge Bridging Loans

These loans take the primary security position on your property, meaning the lender has the first claim if you default. This higher priority generally means more favourable terms compared to second-charge loans.

4. Second Charge Bridging Loans

Secured after the first charge, these loans come with a lower priority in repayment. Because of the increased risk for lenders, they can be more expensive, but are useful if you already have a mortgage on the property.

5. Auction Bridging Loans

Designed specifically for quick purchases at property auctions, these loans provide rapid funding to meet the strict deadlines auctions require.

6. Bridge-to-Let Loans

Used when buying a property to rent out, bridge-to-let loans cover the gap before securing a longer-term buy-to-let mortgage. They offer a short-term solution for transitioning to rental income.

7. Refurbishment Bridging Loans

These loans fund renovations or improvements to a property, helping increase its value before you sell or refinance.

8. Semi-Commercial Bridging Loans

Suitable for mixed-use properties combining commercial and residential spaces, like shops with flats above, these loans provide flexible financing tailored to such unique setups.

9. Commercial Property Development Loans

Ideal for larger-scale development projects, these loans cover new builds or major renovations, supporting longer-term commercial property developments.

Each type of commercial bridging finance is designed to meet different needs, giving property investors and businesses in London and beyond flexible and tailored options to move their projects forward quickly and confidently.

Things to Consider Before Taking Out a Bridging Loan

While commercial bridging finance in London offers fast and flexible funding, it also comes with key considerations that shouldn't be overlooked.

• Exit Strategy: You must have a clear plan to repay the loan, whether that's through selling the property or arranging longer-term finance.
• Higher Costs: Interest rates and fees are generally higher than traditional loans.
• Risk of Repossession: If you fail to repay on time, the lender could repossess the property.
• Lack of Regulation: Commercial bridging loans are not regulated by the Financial Conduct Authority (FCA), so it's important to get expert advice and work with a trusted lender.

Taking the time to understand these points can help you use commercial bridging finance confidently and effectively, especially in London's fast-moving property and business markets.

Using a trusted bridging loan broker in London can help you navigate the market, compare deals, and avoid costly mistakes. They'll also make sure the terms are tailored to your needs.

Is Commercial Bridging Finance Right for You?

If you need fast funding and have a clear plan to repay, commercial bridging finance can be a powerful tool. It's ideal for business owners, property developers, and investors who need quick access to capital without the delays of traditional borrowing.

Before making a decision, always consult with a commercial finance advisor who can guide you through the process, assess your risks, and help you find the most suitable deal.

How Our Commercial Bridging Finance Broker Can Help

Navigating the world of commercial bridging finance can be tricky, but our expert commercial bridging finance broker in Wembley is here to make it simple and stress-free. Whether you're looking to buy commercial property quickly, refinance, or release equity, we offer personalised support tailored to your unique needs.

Here's how our commercial bridging finance broker can help you:

• Access to Exclusive Lenders: We connect you with specialist bridging loan providers across London, including lenders not available on the high street.
• Personalised Guidance: We take the time to understand your business goals and financial situation to find the best bridging finance options for you.
• Speedy Approvals: With deep knowledge of the process, we help speed up applications so you can secure funds when time is tight.
• Better Deals: We negotiate on your behalf to get competitive rates, lower fees, and flexible repayment terms.

• Exit Strategy Planning: We help you create a clear and realistic plan to repay your loan, which is crucial for approval and peace of mind.

When you work with our commercial bridging finance broker in Wembley, you get expert advice and hands-on support to confidently secure the funding your business needs, fast and hassle-free.

If commercial bridging finance is what you need, speak to Infinite Finance London at 020 3813 7800 to explore flexible loan options for your business.

Get Fast Access to Commercial Bridging Finance

If you're looking for expert help with commercial bridging finance, call Infinite Finance London at 020 3813 7800 to get flexible funding for your business.

With access to a wide range of bridging lenders, our commercial bridging finance broker can secure the best commercial bridging finance deals in London, tailored to each client's unique situation.