Commercial Bridging Loans

We arrange commercial bridging loan facilities for property investors and developers through our vast network of lenders, delivering fast, flexible short-term finance tailored to your specific requirements

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What is a Commercial Bridging Loan?

A commercial bridging loan is a short-term finance solution secured against a commercial property, designed to bridge the gap between an immediate funding need and a longer-term arrangement such as a commercial mortgage, or the sale of a property.

Bridging loans can be arranged quickly, often within a matter of days, making them ideal for time-sensitive transactions. Interest is typically rolled up and repaid at the end of the term, meaning there are no monthly repayments during the loan period.

Commercial bridging loans are available on terms of 1 to 24 months, with loan amounts ranging from £100,000 to £50 million, and are assessed primarily on the property and the strength of the exit strategy rather than the borrower's income.

Typical Exit Strategies

A clearly defined exit strategy is essential when securing a commercial bridging loan. The most common exit strategies include:

  • Sale of the property - The property is sold at the end of the loan term, with proceeds used to repay the loan in full.

  • Refinance onto a commercial mortgage - Once the property is stabilised or tenanted, the bridging loan is refinanced onto a longer-term commercial mortgage.

  • Refinance onto development finance - Where a site has been acquired using a bridging loan, the exit is a refinance onto a development finance facility to fund the construction.

  • Sale of another property or asset - Proceeds from the sale of a separate property or asset are used to repay the loan.

Key Features

  • Loan Terms - available from 1 to 24 months, providing flexible short-term finance to suit your timeline.

  • Loan Amount - borrow from £100,000 up to £50 million depending on the property and lender criteria.

  • Loan to Value - up to 75% LTV on a gross loan basis, with rates dependent on the security strength and exit strategy.

  • No Monthly Repayments - interest is typically rolled up and repaid alongside the loan at the end of the term.

  • Speed - commercial bridging loans can complete in as little as 14 days, making them ideal for time-sensitive transactions.

  • Flexible - assessed primarily on the property and exit strategy rather than the borrower's income, making them accessible to a wider range of borrowers.

  • Property Types - available across a wide range of commercial assets including offices, retail units, warehouses, mixed-use, and semi-commercial properties.

What Can a Commercial Bridging Loan Be Used For?

  • Auction completions typically require funds within 28 days, making a bridging loan the ideal solution to meet tight deadlines.

  • Bridge the gap between completing a purchase and receiving the proceeds from the sale of an existing property.

  • Where a development project is complete but units remain unsold, a bridging loan can be used to repay the development finance facility.

  • Acquire a site or property ahead of a planning decision, bridging the gap until planning is granted and longer-term development finance can be arranged.

  • Fund light to heavy refurbishment works on a commercial property prior to refinancing onto a longer-term facility or sale.

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We’d love to hear from you. Please reach out and we will be in touch shortly to discuss your commercial bridging requirements.