Business Bridging Loans: Fast, large-scale funding for property and more
Securing funding on property with business bridging loans can help you raise large scale short term funding - to buy property or for any other business need
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Current Terms Available
Scaled for your needs
- 1 to 12 months
- No Maximum
- Competitive monthly rates
- Non-status and full status
- Bridge short-term funding gaps
- Interest roll-up schemes
- Adverse Credit – no problem
- Funding can be available in 5 – 7 business days
- Can be used for refinance
- Up to 100% Loan to Value available
- Land or premises purchase up to 70% of value
- Commercial, Residential and Land
When you need large-scale finance immediately, a Bridging Loan could be the answer.
A business Bridging Loan is a short-term loan secured against property.
The property can be residential, such as buy to let flats, or commercial, such as offices, factories or warehouses. The loan can be used to buy the property itself, or as funding for any other business purpose.
It’s called a Bridging Loan because it is designed to bridge a short-term funding gap. Bridging Loans are usually repaid quickly, either by the sale of the property, or by another finance product designed for the long-term, such as a mortgage.
Bridging Loans are often used to fund property purchases, but there is no restriction on how funds can be used. So if you are faced with a sudden expense - or if you need finance to take advantage of an opportunity - a Bridging Loan secured on property you already own could provide the answer.
The loan can be as short as one day and run up to a maximum of 12 months. Loan amounts start at around £25,000, and there is no maximum.
A Bridging Loan can be arranged fast
Bridging Loans are intended to let you deal with urgent needs, or to take advantage of opportunities as they come up. It is essential that you can have the loan agreed and the funds you want in the shortest possible time. Bridging Loans can be arranged within a matter of hours, and funds released in as little as 72 hours, under certain conditions.
Large amounts are involved, and lenders offering Bridging Finance will carry out detailed checks and apply conservative lending criteria, but are able to make rapid decisions because they can work without the bureaucracy that slows down many traditional lenders.
What do Bridging Loans cost?
Short-term finance is always more expensive than long-term lending. The costs of Bridging Finance can be relatively high, but because loans are for the short-term, the overall cost may have little actual impact on the long-term costs of a major purchase.
Interest rates charged will vary, depending on your circumstances and your business, and the deal to be funded. Current rates can range from 0.7-1.5% per month, with even higher rates for more difficult propositions.
In addition, there may be a number of fees, including an arrangement fee which can be 2% of the loan amount, an exit fee which can equal one month’s interest and surveyors’ and legal fees. If the loan runs over the agreed term there will also be substantial penalty fees.
Repayment arrangements can vary. In some cases, all fees and interest can be rolled up into the loan, which can be settled with a single repayment.
If you are using a Bridging Loan as a short-term solution for a property purchase it can often be paid off by a solution designed for the long-term, such as a Commercial Mortgage.
Why you need Rangewell to find the Bridging arrangements that are right for you
Bridging Loans involve large-scale funding, and getting the right deal can make a difference of tens of thousands of pounds.
Even a fraction of a percentage point can make a substantial difference to what you actually pay, while fees and penalties can complicate the position still further. There are many different lenders who may be prepared to offer funding. Each has their own approach to interest rates and fee arrangements, and comparing offers needs an expert eye.
At Rangewell, we know the lenders who can offer business Bridging, and we can use our expertise to identify the deal that really is the most appropriate for you. Our knowledge can not only help you secure the funding you need - it can save you a great deal of cash.
Remember, Bridging Loans are designed for short-term use. We can help you use them as a tactical source of funding for the short-term, and then work to find the most competitive source of long-term funding to replace them.
REAL EXAMPLES OF WHAT WE CAN DO
Find a bridging finance deal of over £1 million to let a developer secure a property bought at auction - ensuring he could move his project forward and protecting his deposit
Source funding to allow an engineering company to buy a competitor - in effect doubling the size of the business overnight
Found a lender to advance finance to allow a manufacturing company to buy a factory
Find the most competitive funding arrangement to let a chip shop buy their premises
Helped an industrial estate owner secure funds to buy an adjacent property at auction, ensuring scope for growth
Finding out more about Bridging Loans
If you want to look at a Bridging Loan as a solution for your financial needs, contact us at Rangewell. Our experts can work with you to understand your needs, and use our network of contacts to find the lender with the most competitive solution.
What people say about bridging loans
Helping you build your profits
For property professionalsProfessional landlords, investors and property developers all use bridging finance as part of their overall funding strategy.
For businesses with property needsBridging loans can provide help to support all types of property acquisitions, including your own business premises.
Funding for any purposeSecuring funds on your existing property can allow you to raise large-scale funding very quickly, offering a solution to deal with opportunities such as the purchase of another business.
For developmentBridging loans can provide a funding solution for short-term development projects which can be refinanced at a higher value once work is completed.
A fast applicationBridging financiers will look at your credit profile, the value of the asset, and your exit strategy to make a decision in the shortest possible time.
A single repaymentIn most cases, all fees, interest and charges can be rolled up into a single repayment made at the end of the loan term, when an alternative fund source has been arranged.
Download Rangewell’s free and detailed guide to Bridging Loans
How does a Bridging Loan work?
How can a Bridging Loan support your business?
What are the real costs - how do they vary between lenders?
What can a Bridging Loan be used for?
The downsides of Bridging Loans
What paperwork do you need?
Guarantees and security
Key Terms to check
You need to know how you will repayIt is essential to have a clear exit strategy to ensure the loan can be repaid to avoid paying high penalty interest rates.
Some Bridging Finance may require a regulated lenderIt is not always essential to use an FCA registered lender. Many reputable Bridging Lenders are members of the Association of Short Term Lenders, a self-regulating body which operates a strict code of conduct. Getting an expert view of which lender to use is essential.
Your property may be at riskYou should remember that a Bridging Loan works like a mortgage and property may be at risk if the loan repayments are not kept up to date.
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