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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:

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

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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