It is a short-term loan secured by a business asset such as a warehouse, barn, industrial unit, or workplace building. Bridging finance might assist your company in covering occasional but urgent expenses.
Is Bridging Financing the solution for you?
The best part about bridging financing is that they are short-term, interest-only loans. These loans are typically spread over a period of 18 months but in some cases, some lenders’ timeline varies (depending on the case).
Interest is normally rolled into the loan during the term and reimbursed at the end of the period, or sooner if the loan is returned early. As a result, there are rarely any monthly payments.
To acquire a capital investment injection or to address short-term cash flow issues, or to acquire a property on auction, bridging finance is the best option available.
It’s crucial to remember that, while bridge loans provide rapid cash flow, they come with higher interest rates and often need collateral.
At Asset Finance we are excited to see that you want to grow your business and we are all geared up to assist you with your bridging loan application by approaching our panel of lenders to ensure that your company receives the best possible deal.
How do commercial bridging loans work?
Bridging loans are short-term, interest-only loans that are usually arranged for up to 18 months (although some lenders offer longer terms).
During the term of the loan, interest is usually rolled into the loan and repaid at the end of term, or sooner if the loan is repaid early. As such, there are usually no monthly payments to make.
What is bridging finance used for?
Bridging finance to get a working capital boost or to cover short-term cash flow challenges, or to purchase a property at auction.
It’s important to bear in mind that although bridge loans provide immediate cash flow, interest rates are higher, and you’ll typically have to offer collateral.
At Asset Finance, we can support your bridging loan application by approaching our panel of lenders to make sure your business gets the best deal available.