The demand for Bridging Loans continues to rise yet again! In 2016 the annual bridging lending was £626.4 million and has continued to rise this year to £4.7bn. Bridging loans have mostly been used for property, often to repair broken property chains or to purchase a property quickly. However, increasingly SME’s are turning to this very flexible form of finance to raise capital for a much wider variety of uses.
Below are a few of the most common uses of bridging finance for businesses:
To refurbish office or retail space;
A bridging loan can be a very ideal solution for refurbishing office or retail space owned by the company, as typically it will be repaid when the premises are re-mortgaged following the uplift in value. whether you are looking at light refurbishment or a major re-development, Bridging finance can be used for projects of all sizes.
When it comes to commercial deals, funding is often needed fast, therefore time is of the essence; whether its to buy into a new venture or to acquire another business. Bridging loans can be arranged very quickly in extremely tight timescales from as quick as a matter of days.
To expand business operations;
If you are looking to expand a business, you may need to purchase more vehicles or specialised equipment. In such cases, bridging finance can often provide the funding needed much more quickly than other avenues to help kick start business growth.
To provide funds for relocation;
A bridging loan can be ideal for businesses that are looking to relocate, securing the new property and helping with the costs, such as removals, furniture and IT etc. A bridging loan can save businesses from dipping into their own cash reserves to fund the move themselves. The money can be paid back when the relocation is complete and the business starts to reap the rewards.
To acquire commercial premises;
Very often Bridging Finance comes into play where mainstream lenders are unable to meet the necessary timescales. When a property purchase requires a quick completion, Bridging Finance can secure the chosen premises very quickly, and it can then be re-financed for the longer term knowing the space has been secured.
Here at Key we have a panel of over 30 providers of bridging loans both residential and commercial, many of which specialise in their own niche and provide the very best rates and terms in the market. Call the experts at Key Commercial Finance Solutions Ltd today and we will be more than happy to assist you further.