Bridging Finance

What is Bridging Finance or a Bridging loan?

Bridging finance offers a short-term borrowing solution to businesses or individuals who require a fast turnaround and is often used to bridge the gap while waiting for future cash. Mainly used on developments and for property projects and it can also be used for any residential or business loan purposes and is therefore very flexible. As traditional banks and building societies have become more wary about lending, the number of bridging finance companies in the market has increased. The key considerations for lenders of this type of finance is what is known as the exit plan and how you are going to pay back the loan at the end of the facility.

Key Features

  • Terms from 1-24 Months
  • Rates starting from 0.40% pm
  • LTV up to 85%
  • Borrow from £30k – £15mill
  • Retained, services or Rolled up Interest available
  • Exit plan needs to be established


  • Decision in principle in as little 3 hours
  • Funding can be secured quickly within 2-3 weeks
  • No early repayment costs
  • Flexible and used for any legal purpose
  • Minimal paperwork required
  • Ideal for auction purposes

Are you eligible to apply for funding from Elite Business Funding?

Your bridging finance providers Essex team will assess certain criteria when considering your loan application. It’s worth noting that you don’t need to be based locally to apply for finance, and that bridging finance lenders Essex will look at applications from the rest of the UK too.

You will need property which will be required to be used as security in the loan agreement – you can use more than one property as security if required. Additionally, some bridging loan lenders may require you to prove your monthly income, but again this isn’t always the case as bridging agreements don’t usually rely on you paying back the interest on a monthly basis.

Finally, if you’re going to be using the funds for commercial purposes, for example in a commercial property development portfolio, then you may need to prove to your bridging finance lenders Essex team that you have previous experience in this area, and that you have a solid plan of action.

The application process

  1. Fill out our enquiry form or contact us to instruct us how much you require

Things to consider are the security you have available, what your exit plan will be

  1. After speaking with a relationship manager, we will find the best available offer

Where possible we will be able to provide indicative terms / a decision in principle within 2-3 hours

  1. Subject to your acceptance of an offer an application is submitted to the lender

An application form and relevant documents are provided with an initial approval subject to legal and valuation reports. Initial approval is usually within 24-48 hours.

  1. Once valuations are completed and subject to acceptance contracts can then be drafted and solicitors instructed

This process can typically be completed within 5-14 working days.

Contracts are signed and funds can then be released subject to any remaining requisitions or documents required

What is bridging finance used for?

Bridging loans can be used for any purpose though most often they are used for the purchase or renovation of an asset or property. They are widely used by property developers for this reason as they allow fast access to cash while for example a mortgage is being obtained. Other examples include:

  • Expanding an existing property portfolio
  • Property refurbishment light, heavy or aesthetic
  • Property purchase – perhaps while waiting for an existing property you own to sell – effectively bridging the gap between sale and completion dates in a property chain
  • Commercial / business purposes. For cashflow, equipment, or paying a VAT bill
  • Overdraft type facilities – Allowing you to purchase assets at auction
  • Construction companies – To assist with capital for completion of works or while waiting for a large payment to come through.

What are Common Exit routes to a bridging loan?

Bridging loans fall into two main categories – closed bridging loans and open bridging loans. The difference between them is largely to do with the existence of an exit plan. In order to secure a bridging loan, the most important aspect in getting approval from a lender and what influences the rate is the security used, use of funds and exit plan. This refers to planning and proving to your potential bridging loan provider as to how you’re going to pay the loan back. There are several common scenarios to paying back the short-term loan as shown below.

  • Re-mortgage of the property
  • Sale of one or more Properties – primary &/or secondary
  • Long term business loan
  • Re-finance using another bridge or renewal
  • Sale of Investments or shares

On the other hand, bridging finance lenders who offer open bridge loans don’t necessarily require a formal exit plan – instead, the loan can be used to obtain funds urgently, and can typically be paid back within a year.

A closed bridging loan is often used exclusively when a borrower faces short term finance to ‘tide them over’ until a better source of longer-term finance becomes available. In this case it’s possible to set a fixed date for the repayment of the bridge.

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