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Commercial Bridging Loans

A commercial bridging loan offers you access to finance fast, enabling you to act quickly when time is of the essence. Enquire online today for a no-obligation consultation on commercial bridge loans up to £25 million.

If you need to ‘bridge’ the gap between having the funds available and making a business purchase, speak to one of our specialist commercial bridging loan advisors. We’ll place you with the most suitable lender for your circumstances and guide you through the journey to help your business meet its goals.

Whereas commercial mortgages can take months to arrange, bridging loan finance for commercial use can be fast tracked and put in place within weeks of your enquiry.

Commercial bridging loans are ideal for the purchase of a property, development land, or if you’re in need of a cash injection to overcome short term cash flow issues.

Commercial Bridging Loans Explained

A commercial bridging loan works in a similar way to a standard bridging loan, except that the loan is secured against a commercial property. Provided they have a clear exit strategy to repay the loan when it is due, there’s no reason why a business shouldn’t be able to access bridging finance in the same way that individuals can.

There are a number of reasons why a business might need a commercial bridging loan. One of the most common is when funding is needed urgently to secure a commercial property, in which case a commercial mortgage would not be appropriate due to time constraints. Other common reasons include if a business is experiencing cash flow issues, or when property developers may be struggling to secure funding from commercial mortgage lenders. Learn more about using bridging loans for property development here.

Whatever it is you need a commercial bridging loan for, our advisors are here to help you find the right product for your needs. Being completely independent means that the advice we give is always impartial, so you can rest assured that we’ll place you with the right lender. We have experience working with businesses of various types and sizes, and we have advisors who specialise in bad credit bridging loans if your credit history is less than perfect.

commercial briding loans

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Why Choose Us?

Whole of Market Access

There are various specialist lenders in the UK that offer commercial bridging loans, each with different terms and criteria. With access to the Whole of the Market, our advisors are well positioned to place you with the right lender and help you find the best deal. This includes lenders not available on the high street.

We Are On Your Side

We work for you, not the lender and will act solely in your best interests. Our brokers are whole of market, impartial and independent. So you can be sure that the product we recommend will be the best available loan to suit the situation that your business finds itself in.

We Do The Hard Work For You

Sit back and let us do the hard work for you; it’s our aim to be as diligent and thorough as we can be in our whole of market research for commercial bridging loans. Together with our professional advice, we’ll guide you through the entire application process, helping with all of the paperwork, and even sourcing legal and conveyancing specialists where necessary.

We Consider Your Circumstances

We take the time to review and carefully assess your business’s specific circumstances. We’ll check your affordability and suitability to the whole of the market. This helps us to find the right loan to assist your business. We’ll walk you through all of your options when helping you to find the right Commercial Bridging Loan.

Commercial Bridging Loans - FAQs

Commercial bridging loans are simply bridging loans for borrowers who require finance for commercial purposes. Typically this will be to fund the purchase of a commercial property or development land.

A commercial bridging loan is classed as an ‘unregulated bridging loan’, which just means that the property that the loan is secured against is a business premises or an investment that the borrower will never live in themselves. This is in contrast to a ‘regulated bridging loan’, in which the property used as security will be primarily residential in use, and usually lived in by the borrower.

Businesses have two options when taking out a bridging loan: open or closed.

Open bridging loans offer greater flexibility since there is no fixed repayment date. You will typically be expected to repay the amount within 12 months (terms can vary), however when you pay within this time is up to you. This can be extremely useful if you aren’t quite sure when the sale of your existing property will be completed, but you need access to finances now.

With a closed bridging loan, on the other hand, you will be given an exact date by which you need to repay the full amount of the loan. If you’ve exchanged contracts and you know when the money will be coming in, this might present a better option for you with more favourable terms.

If you would like any more information, or you are unsure whether you require an open or closed bridging loan for your business, get in touch with our team today.

Commercial bridging loans are available from a variety of lenders and the amount you could borrow ranges from around £25,000 to £25,000,000. This will of course depend on the individual circumstances of your case, such as your finances and the status of the property/investment that the loan will be secured against.

Yes, it’s not unusual to be accepted for a commercial bridging loan even with bad credit. Most lenders tend to look for a solid exit strategy and your plans of how you are going to settle the loan within its term. Get in touch to speak to one of our experts today and we can help you everything you’ll need to know.

Commercial bridging loans have a relatively high rate of interest and are a larger loan over a much shorter term, making them ideal for “bridging the gap”over the short term. Whereas a commercial mortgage is a low interest form of financing premises taken over a time frame of up to 30 years, so much better suited to longer terms.

Most lenders will want you to repay a commercial bridging loan within 12 months, although as always, there are exceptions to this rule. Longer repayment terms do exist and since our independent advisors have access to the whole of the market, we can help you find a lender offering the right terms for your needs.

Keep in mind however that the longer the repayment terms, the more you will accrue in monthly interest. If you’d like to discuss the different terms available for commercial bridging loans, enquire online for a free, no-obligation consultation with one of our advisors.

Typically across the board, lenders usually have arrangement fees of around 2% of the sum total of the loan. This means you don’t have to pay these in advance as they are deducted from the total amount. So were you to arrange a £100,000 commercial bridging loan then you would receive £98,000 by means of advancement. To learn more about the fees involved with commercial bridging loans, get in touch with our team today.

It’s standard practice when assessing commercial bridging loans that the lender instructs a property surveyor to carry out an independent valuation of the property, site or premises. The fees for this must be covered by the borrower. This ensures the lender that the site/property provides sufficient security to cover the loan.

Yes. The legal fees will need to be factored into the total cost of your commercial bridging loan, for the lender’s legal fees and your own appointed solicitors’ fees also.

Bridging loans can be a suitable method of financing for those who are self-employed and are useful for a variety of different funding requirements.

For example, if you’re self-employed and investing in redeveloping a property that you have bought at auction and now need a loan to complete the purchase of the property within its allotted 28-day period.

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