For Businesses
Technology
Short-term funding backed by assets
Estimated time to read page: 2min 55s | Written - January 2025. Reviewed quarterly.
"Bridging loans offer short-term funding solutions for businesses facing time-sensitive opportunities or challenges. Ideal for covering gaps in cash flow, property purchases, or urgent investments, these loans are designed to keep businesses moving forward when timing is critical." - Jamie Davies, Head of Lending
A Bridging Loan is a short-term finance option designed to "bridge the gap" between immediate funding needs and a longer-term financial solution. These loans are commonly used for property purchases, development projects, or urgent cash flow requirements.
They usually require an asset to back the transaction and are known for the option to "roll-up" the interest, meaning the borrower can repay the whole sum with interest at the ned, or only pay fixed interest free monthly instalments, and repay only interest at the end of the term.
Secure short-term funding with Bridging Loans – a quick and reliable way to meet your immediate financial needs.
The industries that typically apply for asset finance are:
Bridging Loans provide quick access to funding for time-sensitive needs, such as securing property deals, covering auction purchases, completing renovations, or managing temporary cash flow gaps.
Bridging loans, development finance, and auction finance are short-term financing solutions for various property-related needs.
Residential bridging loans cater to individuals, while commercial bridging loans focus on businesses. Development finance supports property development projects. Auction finance helps secure properties at auctions. Closed bridging loans have predefined repayment sources, while open bridging loans offer more flexible repayment timelines.
The specific eligibility criteria will depend on each lender, the rule of thumb usually involve:
Ownership of assets to secure the loan
Sufficient equity in property or asset backing the bridging loan
Clear repayment strategy
Bridging loans, while offering quick access to funds, come with higher interest rates compared to traditional loans. Additionally, borrowers typically incur arrangement fees (a percentage of the loan amount), valuation fees for assessing the secured asset, and sometimes exit fees if the loan is repaid early.
By joining years of expertise with our in-house intelligent lending technology, we are able to quickly match your business to the best product and the right lender for your circumstances, even if you have struggled in the past, in a simple and straightforward way.
On top of that, we provide advice and support through the entire process. Arranging a finance facility can take time. We assist you in cutting through the unnecessary and focusing only on what needs to be done.
We make it easier for you to raise commercial finance for your project or business. As we're not tied to specific commercial finance lenders, our concern is what's best for you.
Loan terms typically range from a few weeks to 24 months, depending on your needs and repayment strategy.
Yes, it’s a popular option for financing renovations or developments until long-term funding is secured.
Yes, these loans are secured against assets, usually property.
Funds can often be arranged within days, making it ideal for time-sensitive situations, which can be used as a tool to release funds whilst securing a longer term solution that could take longer to get to the approval stage.
An exit strategy is your plan for repaying the loan, such as selling a property or securing long-term finance. Lenders require this to ensure repayment.
