Bridging Finance Services

How bridging finance can help you move forward

We have a great deal of experience in providing bridging finance services to clients in the UK. The employment of a bridging loan can be very beneficial, especially if your business opportunity is time sensitive.

When entering into any financial contract it is important to be well informed, understanding the difference between a term loan and a bridging loan is important. A bridging loan is a high interest, short term financial service which is often used for property transactions. This form of lending is designed to be used for very short-term projects, or to secure funding until a long-term source of finance is established.

Bridging finance loans are a fast and flexible way to fund property deals. They do attract a higher rate of interest than term loans, typically between 1% and 2% per month, but this is only payable for a brief period. Funding can be received in as little as 2 days; however, allowing up to 2 weeks should ensure that you receive the best deal available.

If you are purchasing a commercial property you should be able to borrow around 70% of the value of that property at auction as a bridging loan. In the UK it is possible to borrow up to 100% of the property value, however loans of this size often require some form of additional security. Taking out a bridging loan against your domestic property can be an effective way of raising business funds, but you will need a certain level of equity in your home.

Another use for bridging finance is to take advantage of fluctuating interest rates. If your company is about to take out a large, long term commercial loan and interest rates are expected to fall, then a bridging loan can be used. Now the following month when interest rates have fallen the long term loan can be taken at a lower rate. The relatively small amount of interest which accrued from the bridging loan is more than compensated for by the saving made over the course of the long term loan.

At Strategy Corporate Finance we will use our experience and contacts in the bridging finance services sector to obtain the best deal available for you in the shortest possible time. If you have any questions regarding bridging loans or would like to discuss a business opportunity please do not hesitate to contact us on 0845 838 0936 or drop us an email.