Bridging Finance

Bridging finance is a short term business loan, usually granted for between 1 and 18 months.  In most cases the loan is backed by property such as commercial premises, buy-to-let portfolios or residential homes. It can also be secured on other ‘hard assets’ such as plant & machinery, holiday homes or high value vehicles. However the latter forms of security are usually only taken as additional assets with which to increase the amount of money that can be borrowed.

Bridging finance loans are either classed as regulated or non-regulated facilities.  A regulated bridging loan is secured by way of a first legal charge on the borrower’s principal private residence (their home).

A non-regulated facility is either secured by way of a second ranking legal charge on the borrower’s home or on other property assets that do not form the borrower’s principal private residence. only arranges non regulated bridging finance loans for its clients.

Prior to applying for a bridging finance loan a business should be able to answer the following questions:

  • How much do they need to borrow from the lender?
  • What security is being offered?
  • When and on what basis has it been valued and by whom?
  • Where is it?
  • How long do they want the money for?
  • What is the exit route?

For further assistance and help in securing bridging finance facilities please visit our contact us page or call 01423 423 042.