Bridging Finance
What is a Bridging Loan?
A short term loan that can be used to ‘bridge the gap’ whilst waiting for a longer term funding solution to be ready.
Why Choose a Bridging Loan?
A bridging loan can be useful if you need to borrow money for a short period, whilst waiting for more permanent funds to come through, such as from a property sale.
How it Works
Bridging funding is typically quick to apply for and obtain, with shorter repayment periods than other types of business finance.
Bridging Loans at a Glance
Eligibility:
Equity within residential or commercial property or land.
Security:
First or second legal charge.
Loan Amounts:
Loans from £20,000 - £25m +
Turnaround time:
Decision in principle in as little as 24 hours. Funds available in 2 - 6 weeks
Terms:
3 - 24 months
Repayment terms:
Monthly serviced, rolled-up or retained options
Interest Rates:
From 0.42% per month
LTV
Up to 80% LTV
At Elite Business Funding, we specialise in providing bridging finance to companies throughout the UK, offering fast and flexible short-term loans to help with property purchases, or purchases at auction where speed Is key along with renovation projects or any business purposes. Our bridging loans are designed to provide quick access to capital, ensuring that property investors have the funding they need for success.
What is Bridging Finance?
A bridging finance loan helps businesses and property investors to “bridge the gap” between needing immediate funds and securing long-term financing. This solution is ideal if you require quick access to cash, particularly when waiting for other financial resources to come through, such as the sale of a property. Whilst bridging finance in the UK is often associated with property transactions, it can also be used for a wide range of business purposes. With a fast approval process, it offers immediate financial support without the delays of traditional lending.
Benefits of Bridging Finance
- Decision in principle in as little 3 hours
- Minimal paperwork required
- Funding can be secured quickly, usually within 2-3 weeks
- No early repayment costs and only pay for the time lapsed
- Flexible payments
- May be used for any property and business purpose
- Ideal for auction purposes
- Useful for renovations on properties to increase value
- Use equity within existing properties to grow your portfolio
- Avoid property chains holding up progress
What can Bridging Finance be Used For?
Bridging loans can be used for any purpose, personal or business, 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 waiting for a mortgage to be obtained. They can also be used for business purposes. Some examples of what our clients have typically taken bridging finance for include:
- Expanding an existing property portfolio
- Property refurbishment
- Property purchase (e.g. while waiting for an existing property to sell – effectively bridging the gap between sale and completion dates in a property chain)
- General commercial / business purposes (e.g. for cashflow, equipment, or paying a VAT bill)
- Overdraft type facilities – allowing you to purchase assets at auction
- For construction companies: to assist with capital for completion of works or while waiting for a large payment to come through
Why Choose Bridging Finance?
Bridging finance loans offer several key benefits, including:
- Quick Access to Funds: Bridging finance can be secured in a matter of days, providing businesses with fast access to capital. We offer decisions in principle in as little as 3 hours, with funds typically available within 2-3 weeks.
- Flexible Repayment Options: Bridging loans come with various repayment options, often rolled up meaning you do not need to service repayments monthly, allowing you to choose what works best for your financial situation.
- Minimal Paperwork: We streamline the application process, requiring minimal documentation to help speed up the approval and funding process.
- No Early Repayment Penalties: You only pay for the time you use the loan, without facing penalties for repaying the loan early.
- Avoid Delays Due to Property Chains: Bridging finance loans are ideal for overcoming delays in property purchases, where chains might hold up progress. A bridging loan can allow you to move forward without unnecessary waiting.
How Does Bridging Finance Work?
Bridging finance provides short-term funding secured against an asset, such as property. The loan is repaid once longer-term financing is secured or when the asset is sold. The process begins with a straightforward application, where you provide details of the property or assets to be used as security. Once you submit your application, we’ll review the information and, if suitable, offer a decision in principle quickly, often within just a few hours.
After approval, the funds are transferred into your account within two to three weeks, giving you immediate access to capital. Once you’ve used the funds, the loan is repaid when the long-term financing is secured or when the asset is sold. Bridging finance allows property investors and businesses to keep moving forward, without having to worry about delays.
Get Started with Bridging Finance Today
Elite Business Funding is a leading provider of bridging finance UK, offering tailored solutions to meet the unique needs of businesses across various sectors. Whether you need immediate funds for a property purchase, expansion, or to allow you to better manage cash flow, we provide fast, flexible, and reliable financing to help you achieve your business goals. Get in touch with us today to discuss how our bridging finance loans can help your business succeed.
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