Commercial Bridge Loans - Bridging Loans UK

At Taste Finance we partner with businesses across the South-West who are looking for financial solutions including commercial bridge loans as well as short term, medium term or long term finance, commercial mortgages, and development finance.

We have developed relationships with a large number of  lenders and work across a broad spectrum of business industries to provided tailored solutions for businesses of all types.

Commercial mortgages for business

What are Commercial Bridge Loans?

They are a type of short-term finance that is typically used to fund the purchase of commercial property. The loan is typically repaid within 12 months, although some lenders may offer longer repayment terms. They  can be used for a variety of purposes, including the purchase of an office or retail premises, the refurbishment of  property, buying property at auction, or the purchase of a portfolio of properties.

How do Commercial Bridge Loans work?

They are interest only loans, that have an agreed monthly interest rate which is usually rolled up and paid at the end of the loan, but can sometimes be paid monthly. Unlike a commercial mortgage they can be completed much quicker normally in weeks. Requirements for lending normally consist of a valuation and an exit plan

What can Commercial Bridging Loans UK Be Used For?

Purchasing Commercial Property

Bridging finance is often used to purchase property that requires renovation and will bridge the gap between the work being carried out and the property being refinanced on a long term basis with a commercial mortgage or sold.  It can be used for the purchase of offices, industrial units, public houses, retail premises, petrol stations, care homes, doctors surgeries, dental surgeries, hotels and agricultural buildings.

Auction Purchase Of Commercial Property

Bridging Finance can be used to purchase commercial property at auction.  Subject to all the relevant information being available, the loan can be arranged quickly and like with the purchasing of commercial property is often used to bridge the gap until the property can be refinanced or sold.

Release Cashflow for a Business

Businesses may at some stage need to use a bridging loan to release some equity from their business property for use over a short-term period.  This may be to purchase stock for manufacture against an order or something else that requires  quick access to cahflow .

Refurbishing a Commercial Property

Businesses can use bridging finance to refurbish their business premises over a short term. As with purchasing commercial property it can bridge the gap until the property is refinanced or sold.

What are the benefits of Commercial Bridging Loans UK?

1.

They can be arranged quickly and often be completed within weeks, or even in days if a valuation and legal pack are provided correctly

2.

Interest is usually paid at the end of the loan rather than paid monthly

3.

They can be flexible and tailored to an individuals circumstances

4.

Higher Limits may be available as the loan is secured against the assetts

5.

Can be used for purposes other than property as long as the borrower can show they can pay the loan back

What are the disadvantages of Commercial Bridging Loans UK?

1.

The potential for large amounts of debt and financial burden in the event of unsuccessful ventures or breach of contract.

2 .

The possibility of elevated levels of risk due to the speculative nature of many commercial finance products and services.

3.

The reliance on capital markets which can be subject to sudden and dramatic changes.

4.

The need for specialized knowledge and skills in order to navigate the complex world of commercial finance

5.

The potential for conflicts of interest between those providing  finance and those who purchase it.

Speak to Taste Finance about your Commercial Bridge Loans Needs

If you are looking for finance solutions for your business and would like to speak to one of our team, then please contact us using the form below.

Finance Solutions For Business