A bridging loan is a short-term secured funding option, mainly used on development and property projects, but is also utilised for business loan purposes.
Think are bridging loans specialists. We work with over 40 lenders ranging from boutique and institutional, to private and commercial. Our rates start at 0.44% per month.
Bridging loans are offered with terms from 1-18 months, with the loan repayable in full at the end of the term. Due to it being short term the interest is worked out monthly with either no monthly payments, or interest-only payments and the capital/interest paid at the end of the term of the loan.
- Applications can be completed in under 14 days, making them ideal when funds are needed quickly.
- Bridging finance can be used to raise capital where cash flow is tight since there are usually no monthly repayments to make as long as you have the assets to repay the loan.
- Bridging loans can be more expensive than traditional mortgages.
- If the business is unable to repay the loan at the end of the term, it would eventually lead to repossession.
Building bespoke carbon neutral homes and businesses to protect the environment. The client use environmentally sustainable properties with Green Energy solutions. Providing sustainable construction with renewable materials.
We were approached for a bridging loan that would be secured against the client's residential property. The business was looking to market a new housing development that was in the process of being built, with the loan.
One of our experts handled the application, and searched for the best possible outcome with over 40 lenders. A bridging loan for £250k was perfect for the needs of the business.
The benefits of using a bridging loan:
- Able to get the funds quickly, and start to market the new housing development.
- Raise capital within the business when cash flow is tight due to no monthly repayments, as the loan was secured against residential property.
Read more about bridging loans here.
With the loan put in place, the client was able to successfully finish building, and market the new housing development project without having to impact their cash flow.
Here at Think, we are bridging loans specialists. We work with over 40 lenders ranging from boutique and institutional to private and commercial. Our rates start at 0.44% per month. Why not fill in the loan journey to see whether or not you are eligible and other loans you could have access to. Alternatively, give one of our experts a call at 0203 880 9880.