Typically bridging loans are considered property loans because the property investors or homeowners use them to complete the purchase of the property. However, they are used for almost every legal purpose. Many bridging loan providers offer different types of bridging finance, including commercial bridging finance. This type of loan is available for individuals, UK limited companies, some offshore borrowing entities and partnerships. You can take a loan as a first or second-charge loan, whatever suits you. It is a type of short term loan that provides a flexible financial solution to the investors and business owners for their short-term plans.
You can get a loan if you have a property to use as security and a robust exit strategy. There are three main uses for which a commercial bridging loan is considered. In this article, you can find all of them.
Lending On Commercial Property
Lending on commercial properties is of two different types, including:
Businesses Who Want Want Purchase Or Refinance Their Own Premises
If you are running your business on rental premises and want to purchase these premises, you can get commercial bridging loans to purchase this property. However, commercial mortgages are also available for trading businesses that want to purchase or refinance their own property. Still, some businesses cannot provide a track record that makes it challenging to get a mortgage. This is where commercial bridging finance can be helpful.
Businesses Who Want To Purchase Or Refinance Property For Rental Purpose
With the right commercial property, investors can earn high yields by renting out these properties. It makes commercial properties an attractive source of investment for property investors. If you want to purchase a property for letting out, bridging finance can help you.
Lending For Mixed Properties (Residential/Commercial)
Commercial bridging loans also provide fundings to property investors who want to purchase a large or complex residential property. Some investors have a diverse portfolio in which they have both commercial and residential properties. Commercial bridging loans can help them to purchase or refinance the multi-unit residential property or student lets.
Releasing working Capital
Bridging finance can be a source of working capital for businesses and property investors. In addition, it can be used by businesses that are facing cash flow problems. It provides you fast access to the cash, and you can use it for several reasons, such as purchasing new equipment, paying wages, business expansion or paying tax bills.
As described earlier, to take out a bridging loan, whether personal or commercial, you need to have a viable exit strategy. If you have it in place, your commercial bridging loan can provide you with a fast and flexible source that you can use to grab time-limited opportunities.
Whether you are a property investor or business owner, we suggest you compare quotes for different providers. If you do not have time to visit each provider, you can go to a comparison site like a short term that provides you with a quick comparison of the UK’s top bridging loan providers. Other than that, you can compare short-term insurance and loan providers without wasting time and effort.