1. What is a commercial bridging loan?

A commercial bridging loan is a short-term facility secured against commercial property for either a purchase or capital raising.

As bridging loans are intended for a short period of time, an exit strategy (how the loan is to be repaid), should be planned in advance. Most borrowers, will refinance onto a long-term commercial mortgage when repaying the bridging facility. Others, may have purchased to refurbish the property and sell on for a profit.

2. When should you offer a commercial bridge to your client?

Bridging loans can also help to develop or refurbish a property. However, it is also used by businesses to raise capital, for a variety of reasons including payment of tax bills, short term cash flow etc.. As long as your client can demonstrate a viable exit strategy, the money can be used for a variety of business purposes.

3. What is considered suitable security for a commercial bridging loan?

A commercial bridging facility can be secured against the following types of security:

    • Commercial & Semi-commercial (mixed with residential)property
    • Industrial property
    • Land, with or without planning permission
    • Farms

4. Who can benefit from the flexibility of a commercial bridging loan?

From receiving an enquiry form, decisions can normally be provided within an hour, with funds being made available within a matter of days. The flexibility of a bridging loan also means the borrower can consist of any of the following:

  • Private Individual
  • UK limited company
  • Offshore company
  • Limited Liability Partnership (LLP)
  • Foreign Nationals