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What is a Commercial Bridging Loan?

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Commercial bridging loans offer a fast-lending solution for property transactions, typically spanning from 6 to 36 months (about 3 years). They are designed to bridge the gap between immediate financial needs and securing a more permanent funding solution, such as a mortgage.

This article explores the key aspects of commercial bridging loans, their uses, application processes, and advantages and disadvantages.

Key Features of Commercial Bridging Loans

A commercial bridging loan is characterised by its short-term nature, rapid approval process, and flexible repayment terms. Unlike traditional loans, bridging loans offer:

Common Uses for Commercial Bridging Loans

Commercial bridging loans are versatile and can be utilised for various purposes, including:

Eligibility Criteria

To qualify for a commercial bridging loan, lenders typically consider:

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Application Process

Applying for a commercial bridging loan involves several steps:

  1. Initial Enquiry – Check eligibility and understand the requirements.
  2. Documentation – Provide business financials, property details, and exit strategy.
  3. Valuation – An independent valuation of the collateral.
  4. Approval and Funding – If approved, funds are typically available within a few weeks.

Advantages and Disadvantages

Advantages:

Disadvantages:

Types of Commercial Bridging Finance

There are two main types of commercial bridging finance. Commercial Occupier Loans cater to business owners who need to purchase new premises or quickly raise funds on a property they plan to occupy.

Commercial Investor Loans are designed for investors aiming to buy, remortgage, or raise money against an investment property.

Bridging Loan Advice

Commercial bridging loans offer a flexible and rapid funding solution for various business needs. Whether you are looking to invest in property, manage cash flow, or expand your business, understanding the features, benefits, and application process can help you make an informed decision.

If you need personalised advice, consider speaking with an independent mortgage broker that specialises in commercial bridging to explore your options.


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About the Author

Wayne Dewsbury

Mortgage Advisor at UK Moneyman Ltd.

There are unlikely to be very many advisors in the UK with Wayne’s wealth of experience. Having joined Nationwide as a Trainee Manager in 1983, he has gone on to perform a wide range of Management and Business Development roles with a number of prominent UK Building Societies and Mortgage Companies and has been a regular contributor of articles and TV/Radio comment.

He continues to advise right across the spectrum from young first time buyers, landlords and to clients in the later stages of life. Whatever the age of the client, he embodies UK Moneyman’s commitment to find the right deal for any customer’s needs and priorities.

Outside work, Wayne is a keen follower of rugby league and spends a lot of time chasing his grandchildren around!

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UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk

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