Bridging Loans: The Perfect Short-Term Finance Solution
BRIDGING FINANCE
May 10, 2022
/

Bridging Loans: The Perfect Short-Term Finance Solution

By
Acuity Finance

Many businesses and property developers often use bridging finance – a fast and flexible short-term solution for cashflow issues – to help them “bridge the gap” financially and support their growth and development.

Our expert team have outlined the benefits of short-term property development finance and how it can easily be tailored to your business needs:

 

What are the benefits?

A bridging loan for property purchases or developments offers a fast and flexible funding solution, assisting with short-term cashflow for up to a 24-month term.

This funding solution allows your business to “bridge the gap” financially whilst you’re waiting for a return from your property invest mentor development, proving the necessary funds to purchase a property or to support the conversion or build of your next project (e.g. if a landlord needs finance for a property conversion).

Not only are bridging loans more flexible and much quicker to obtain than other loans, giving you access to fast cash in as little as 5 working days, but they also allow you to borrow a larger sum of money due to it being secured against the borrowers’ assets.

 

How can they be tailored to your business?

Bridging loans for development finance offer fast and flexible property development finance solutions for every requirement, available as a first or second charge, with a fixed rate and closed bridge.

First or second charge

A first charge bridging loan means that the property you are securing the loan against doesn’t currently have any other loans secured against it. However, if your property does have a loan secured against it (e.g. a mortgage), you can secure this as a second charge.

 

Fixed-rate

Bridging loans come with a fixed interest rate, so your business is always aware of the charge and will have the same monthly repayments.

 

Closed bridge

A bridging loan has a closed bridge, providing you with a set repayment date so your business can be sure that it will have the finances to pay back the loan within the fixed period.

 

How can we help?

We recently helped one of our clients with a £500,000 urgent bridging loan after they have been let down by another funder, providing them with the funds to complete their current development projects.

Over 3 to 4 years, our client has acquired 8 pieces of land, with planning permission for the 6 properties over their land. However, this made a very complex mix of security for the client who was looking to borrow funds, and more difficult for us as they needed the funds within two weeks.

We reviewed the complex mix of securities and formed primary security for the deal to ensure our client received the funds within the required timeframe.

Funding this loan successfully meant that our client had the property development finance required to complete their current development projects within the next 3 to 4 weeks.

As the client also had planning permission for another 4 properties, they also asked for us to put more facilities in place for the rest of the development of the buildings – as we provided the speed required by the client needed to get things done!

Discover how we have also helped many other clients with tailored solutions to their finance needs by signing up to receive our newsletter. Sign up at the bottom of the page.

 

Acuity Finance

We can provide fast and flexible loans to businesses throughout the UK, with tailored solutions to ensure that they work for your business. We also understand that speed is key and can deliver loans to our clients in as little as 5 working days.

Our team of experts will identify the best bridging loan for your requirements and situation. Each of our bridging loans is also under written by one of the business owners, so we can take a more flexible and commercial approach at speed!

Want to find out more about our bridging loans? Speak to one of our team by calling 01905 363999 or emailing info@acuityfinance.co.uk.