Looking for fast commercial bridging finance? We can match you with a finance specialist who will guide you through the process of applying for and securing a competitive short-term business loan.
We’re commercial bridging loan experts
If you are looking to invest in your next commercial property or need short-term funding to ease cash flow or fuel business growth, contact Bridging Options.
We have access to a wide network of UK bridging loan specialists who excel in securing short-term funding solutions for businesses, landlords, property developers and land owners.
Contact us today for a fast response.
Commercial bridging loans we can help with
Our advisers have access to the best commercial bridge mortgage loans in the market and will be able to guide you through the process, application, and securement of bridging finance. Contact our team today for free bridging advice.
Farming & Agriculture
Looking to buy land, machinery, or property for your agricultural business? Perhaps you are looking to invest in renewable energy solutions to ensure the sustainability of your farm for generations to come. A commercial farming bridge loan can help you bridge the gap between purchase and securing long-term financing.
Hotels & Developments
Are you expanding or renovating your hotel in the quiet season? Perhaps you’re looking to acquire another premises or finance a new development project. Whatever the reason, a commercial hotel bridging loan can provide the short-term capital you need to expand your hotel business.
Landlord Bridging Loans
Looking to purchase your next buy-to-let or HMO? Are you facing expensive repair and renovation projects? Perhaps you need to release capital from your existing buy-to-let properties for other investments. Commercial bridge finance can help, even for properties with sitting tenants.
Limited Company Bridging Loans
As a small to medium-sized limited company, don’t let a lack of cash issues limit your growth potential. Our experts can help you find commercial bridging loans specifically tailored for limited companies, allowing you to access fast and flexible funding to address various needs, including temporary cash flow shortfalls.
Bridging Loans for VAT
VAT adds 20% to the cost of commercial property, which can be a real drain on company cash flow. A commercial bridge loan can help you keep things ticking over until you can successfully reclaim the VAT on your next tax quarterly return.
Large Bridging Loans
Do you have your sights set on a substantial commercial property purchase but lack the immediate capital? Large commercial bridge loans cater to transactions in the tens of millions. This can be ideal for property developers or investors seeking to acquire high-value assets like shopping centres, office buildings, or large development projects.
Buy-to-let Bridging Loans
Looking to expand your property portfolio but stuck waiting to sell an existing buy-to-let? A buy-to-let bridge loan could be your solution, allowing you to grow your rental income and potentially secure a better deal on the new property.
Business Bridging Loans
Facing a temporary cash-flow shortage or unexpected business expense? A business bridging loan can provide a quick injection of capital to keep your operations running smoothly. This can be helpful for a variety of needs, such as covering payroll, purchasing inventory, or financing equipment upgrades.
New Build Bridging Loans
Are you looking to finance the construction of a new commercial property but don’t have permanent financing lined up yet? A new-build bridging loan can bridge the gap between the initial construction costs and securing long-term financing once the property is complete.
Free commercial bridging loan consultations
For a free phone consultation on how our advisers can help you find short-term commercial bridging finance for your business, complete the enquiry form or call our number now.
What is a commercial bridging loan?
A commercial bridging loan is a type of short-term business finance, most commonly used by property investors and developers to purchase commercial properties.
Bridging loans are secured loans typically taken out over 12 months, but a commercial bridge loan can be taken out over as little as two weeks or up to three years. It’s the ideal solution to bridge the gap between property purchase and sale or refinancing with a mortgage.
Secure a competitive bridge loan with Bridging Options; call now.
How does a commercial bridging loan work?
Commercial bridging loans offer short-term financing options for property purchases or releasing funds from an existing commercial property. These loans typically have a term period of 12-24 months and, due to their higher risk, come with higher interest rates compared to traditional commercial mortgages.
As they are secured with business assets, this substantially reduces the underwriting process, making them much quicker to secure than a traditional mortgage.
Borrowers can secure a loan based on the valuation of their new commercial property. They can use the funds for acquisition, provided they have a clear exit strategy in place to repay the loan. This could involve selling the property or securing long-term financing, such as a commercial mortgage.
Why would you use a commercial bridging loan?
Commercial bridging loans allow investors to move quickly on property opportunities or buy at property auctions. They are also useful to bridge the gap while you’re waiting for the sale of a current property or planning permission for a development.
A bridge loan can also help with business expansion, providing the funds needed for new equipment, renovations, or acquisitions. Many borrowers use commercial bridge finance to cover unexpected expenses or delays in payments that can disrupt cash flow. A bridging loan can provide a short-term cash injection to keep your business running smoothly.
What can a commercial bridging loan be used for?
Commercial property purchases
A commercial bridging loan can be a useful financing option for purchasing a commercial property, especially if you need to act quickly or have unique circumstances that make it more challenging to secure traditional financing. A commercial building is used for business purposes and might include office spaces, hotels or shopping centres.
Retail units
Using a commercial bridging loan to purchase retail units can be a quick and hassle-free solution to starting your new investment. This includes standalone shops, a unit within a shopping centre, or any other commercial space intended for retail use. The market is competitive and access to quick bridging finance is essential to snap up a purchase.
Industrial estates and warehouses
Commercial bridging loans offer a practical finance solution for purchasing industrial estates such as warehouses, distribution centres or manufacturing facilities. Using commercial finance for industrial units is a faster way to secure the funds for your venture and purchase your desired property.
Semi-commercial property
There is a growing trend for mixed-use commercial property, blending residential and commercial elements under one roof. This could be anything from a block of flats above a shop to a building with office space and a restaurant on the ground floor. These properties can be trickier to finance with traditional lenders, but that’s where semi-commercial bridging loans come in.
What percentage can you borrow on commercial property?
How much you can borrow depends on your eligibility and the value of the property you intend to purchase. Bridge loans are typically between 65% and 75% of the property value, although this varies depending on the lender.
Advantages of commercial bridging loans
- Fast and flexible: Get funds quicker with less strict criteria compared to traditional loans.
- Diverse uses: Bridge finance can cover property purchases, business needs, and unexpected expenses.
- Bridge funding gap: Finance a property purchase before securing a long-term commercial mortgage.
- Unlock equity: Access capital tied up in existing commercial property.
Disadvantages of commercial bridging loans
- Higher cost: Bridging loans have shorter terms and higher interest rates compared to traditional loans.
- Short repayment: To avoid penalties, you need a clear exit strategy to repay within a few months to 2 years.
- Secured loan: Risk losing the property or asset used as security if you can’t repay.
- Temporary fix: Not suitable for long-term financing due to high cost and short term.
Read our article on the pros vs cons of commercial bridging loans.
FAQs on Commercial Bridge Loans
For more information about our commercial bridge loans, please take a look at some of our most frequently asked questions below:
What is the difference between a commercial bridging loan and a residential bridging loan?
A commercial bridging loan is most commonly used by a business to facilitate the purchase of commercial properties, such as retail units, hotels, office spaces and industrial units. A residential loan is used by an individual to purchase a home before selling their current one or as a form of development finance.
Does commercial bridging finance have higher interest rates?
Commercial bridging finance typically has higher interest rates than residential bridging finance. Commercial properties involve more risks, as they are often used for business purposes, which can lead to more complexities and fluctuations in value. As a result, commercial lenders tend to charge higher rates.
What can your business use as security bridging finance?
When applying for a commercial bridging loan, the borrower must secure the finance against a business asset, typically property, land, vehicles, and machinery.
Why do commercial bridging loans require a security?
Commercial bridging loans require security for two main reasons: reduced risk for lenders and guaranteed repayment.
Because these loans are fast and flexible with shorter repayment terms, they carry more risk for lenders compared to traditional loans. By requiring collateral, such as the property being purchased or another valuable asset, lenders have a safety net in case the borrower defaults.
This security allows them to recoup their losses by selling the asset. It also incentivises borrowers to repay the loan on time to avoid losing their valuable property.
How much can I borrow for a corporate bridging loan?
The amount of finance available depends on the value of your available assets. Our brokers have access to a large panel of specialist lenders who can go up to as high as 80% of the asset value.
Most bridging loans in the UK are between £25,000 and £20 million. However, it is possible to borrow substantially more, and our advisers have experience working on large bridging loans for commercial purposes.
Why choose us for commercial bridging loans?
As a commercial property investor or company owner, it’s important to remain agile and flexible where business opportunities are concerned. Bridging Options exists to help businesses and commercial property investors secure the finance they need quickly and with ease, with access to the best deals on the market.
Choose Bridging Options to arrange commercial bridging finance for your next commercial property or business deal. Contact us today for an informal chat and a free, no-obligation quote.
