This website is for UK individuals who are looking for bridging loans on the internet. We offer loans between £10,000-£10,000,000 for people who need bridging cash finance & have tangible assets from which that can be secured against.
What Is A “Bridging Loan”?
A Bridging Loan, is a loan this is designed to be used as a cash bridge that is secured against an asset, it is generally a low interest loan that is made available to qualifying applicants quickly, as is the way it is intended to be used. The maximum loan value is usually in the millions of pounds, and the minimal value in the low tens of thousands, the loans are regularly used for commercial reasons, such as commercial finance, also the loans can be used to purchase a property (usually a commercial property).
What Are The Most Common Uses Of Bridging Finance?
These Finance arrangements are also known as “Swing loans” or “Caveat Loans”, the most common use is for interim finance until a more permanent financial arrangement is made, and it can either be applicable to an individual or a business.
Other Examples Of Corporate Bridge Loan Uses: To inject cash to support a company to protect it from running out of cash during corporate refinancing or restructuring or when waiting for a form of equity.
To help companies at risk of insolvency that are looking for an investor or to support a business that is being sold so that it doesn’t become insolvent as a result of cash flow issues.
As a means to pay off debt before a company is acquired or made public to acquire further finance.
A bridging loan is not to be confused with the very similar “Hard money loan” which is a form of asset based financing usually longer term that is mainly used in relation to real estate.
Non Commercial Uses
In certain purchase arrangements, a house/property could be offered at discount in the event that the buyer can complete the purchase quickly with a discount offered that offsets the cost of the bridge finance that was commissioned to complete the purchase.
Some auctions that sell properties have terms where the buy has around 28 days to get a mortgage, however in some cases this won’t be possible for people, meaning that the best course of action (or perhaps the only viable option is to commission a bridge finance).
A buyer is buying a new house and is choosing to make a down payment with the profits from the sale of a home they already own.
A bridge loan enables the purchaser to take equity/value out of the currently owned property and use that as a down payment on the new property.