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Bridging loans are only intended as a short term finance option.
Their monthly rate of interest is high when compared to other methods of finance, so should not be used as a long term option. It is essential to have an exit strategy because at the end of the agreed term the bridging loan will need to be repaid.
What is a commercial bridging loan?
Commercial bridging loans are short-term loan facilities that are secured on either commercial property, development land or farmland. They are used by businesses or individuals who require a fast or short-term loan ranging from £100,000 to £100 million.
What can a commercial bridging loan be secured on?
Commercial bridging loan calculator
Our commercial bridging loan calculator is designed to provide full details of the costs involved in obtaining a commercial bridging loan. It will calculate and compare the full interest costs if the loan runs full term or is cleared early.
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Commercial bridging loan interest rates and costs
Bridging loans secured on commercial property are more specialist than those secured on residential property, meaning there are far fewer lenders in this market.
Fees and costs for commercial bridging finance
In addition to interest charges, there are other fees and costs involved when taking out a commercial bridging loan.
Commercial bridging loan lending criteria
We have an extensive panel of lenders which enables us to arrange bridging loans for a wide range of circumstances.
The interest charges on a commercial bridging loan can be added to the loan facility and repaid when the loan is redeemed.
Having debts or a poor credit history does not exclude applicants from obtaining a commercial bridging loan.
What is important is the planned exit route. If the loan is to buy a property to restore or convert, then once finished it will be sold for a profit, then this will most likely be acceptable to a bridging lender, regardless of the applicant’s credit history. If the applicant has terrible credit and is planning to refinance once the property is finished, this will be of concern and the lender will require evidence that refinance is possible or that there are other possible exit options.