Bridging Finance

At Simple Commercial Finance we offer a fast and simple short-term finance solution for your property and cash-flow needs.

Bridging loans are a source of short-term finance secured in most cases on land or property (Commercial or residential).

Bridging loans are used when there are tight timescales and money is needed fast.

Typical examples include when a second property is bought before the first is sold and when property is purchased at auction.

We aim to raise funds for you swiftly (often within 5 to 7 working days provided sufficient security is offered) and this type of short term loan can be used for any purpose and range from lending periods of just 1 day to 12 months.

We provide short-term bridging finance and loans for all types of applicants regardless of status providing funding for both employed and self-employed individuals, including those with past credit problems relating to CCJ’s, defaults, arrears, IVA’s and discharged bankrupts.

The finance can be based on the open market value of the property, irrespective of the purchase price, meaning in certain circumstances 100% funding of the purchase can be achieved.

Bridging loans can be a useful tool when negotiating the purchase of a property as the borrower can often complete within a short space of time which may be attractive to the seller.

Bridging loans are generally more expensive than longer term facilities and Lenders will usually require you to have a suitable/realistic exit strategy in place prior to the drawdown of funds however it is very apparent that a bridging loan offers many advantages for the commercially aware borrower.

Bridging finance is an increasingly popular funding solution to secure auction properties and features more and more in funding development projects.

Reasons for Bridging

Fast completion on property purchases

  • Auction purchases
  • Stop repossessions
  • Rapid cash-flow
  • Working capital
  • Loans can be used for any legal purpose
  • Credit repairing facilities available
  • Typically decision in principle within 1 hour
  • Fund can be available within 24 hours
  • Terms from 1 day to 12 months
  • Loans from £25,000 with no upper limit
  • Rates from 0.75% per month

Loans can be raised against open market value rather than purchase price. Highest loan to values – in some cases we can achieve 100% of the purchase price with additional security

  • All status lending no need to provide accounts
  • 1st and 2nd charge facilities available
  • Interest roll-up schemes
  • Interest retained schemes
  • Interest serviced schemes
  • We will assist you in arranging your exit from the bridging finance by way of a re-finance

A classic case for this type of funding is where a property is being purchased at a discounted price. The bridging loan would be used to fund up to 100% of the purchase price, whereas conventional funding would be based on the lower of the purchase price or valuation. The bridge is used for a short period (a couple of weeks or months) whilst the property is refinanced onto more conventional long term funding.

Although traditionally used to buy property or businesses, bridging loans can be used for a number of other reasons such as holidays, weddings, home improvements and renovations, or improving cash flow.