If you want to raise funds quickly on a commercial property already owned or for the purchase of a commercial property that you are looking to buy, then a commercial bridging loan could be the ideal solution for you. Commercial mortgages due to their complex nature are notoriously much slower to arrange and complete than residential mortgages. This makes the use of commercial bridging finance in this sector much more relevant. A commercial bridging loan can be arranged and paid out often before a lender being used for longer term finance has even started to review the case.
Commercial Bridging loans, as it suggests, would be secured on commercial or semi-commercial properties in the same manner as a standard residential bridging loan and normally arranged within the same timeframe. The number of uses are also wide and varied but as commercial bridging finance is not regulated by the FCA, additional funding reasons are allowable, provided any use is fully legal.
Why choose a Commercial Bridging Loan
If you had a commercial property that you wanted to convert it into a residential property i.e. an office block into a set of apartments then you could get a commercial bridging loan secured against the property to either fund the purchase and conversion or if the property is already owned, just to fund the conversion.
Commercial bridging loans are used for numerous reasons such as: releasing equity for debt consolidation, business cash flow injection, building improvement or to purchase more new properties.
What about CCJs, bankruptcies and defaults?
If you have defaulted on previous debts or you have been made bankrupt in the past, UK Property Finance can still provide short-term secured business loans from 1 to 24 months and with no maximum borrowing amount. Unlike a business loan from a bank, commercial bridging loans are arranged on a case-by-case basis, with each loan tailored to meet the individual needs of the borrower.
However, you will obviously need to show the lender that you have the ability to pay the loan back and you will also need to offer security in the form of a residential, mixed-use or commercial property. In general, our short-term business loans are available for private individuals, limited companies and partnerships and they are certainly not limited to those with a perfect credit score.
What Types of Property Do You Accept as Security?
At UK Property Finance, we can provide short-term business loans secured against all types of real estate. Unlike a traditional mortgage, or a secured homeowner loan, commercial bridging loans can be lent against undeveloped land, office units, Buy to Let buildings, licensed HMO (houses with multiple occupancy), semi-commercial or mixed use properties, retail units and residential or commercial redevelopments.
Bridging Loans for Commercial Property Transactions
As well as being useful alternative for those in search of business loans, commercial bridging finance can also be used for a wide range of commercial property transactions.
Refurbishments, property acquisitions, Buy to Let auction purchases, refinancing and capital release are just a few instances where bridging loans can prove to be worth their weight in gold. As one of the UK’s leading commercial bridging loan providers, we have sourced a wide range of time-sensitive solutions to a diverse range of financial situations whilst offering a level of client satisfaction that is quite simply unequalled.
If you would like some advice on commercial bridging loans then please complete our online form and we can get a specialist commercial bridging loans expert to contact you. Alternatively, you can use our bridging loan calculator to calculate your loan repayment.