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Bridging for business

The most common form of bridging any broker will tell you are property related transactions, for example bridging to buy at an auction as funding is currently not in place. Or perhaps a client is using a bridge to buy their dream home as the one they are selling has not completed on time.

This is fully understandable, as these are certainly very common uses for a bridging loan. But at the same time, it’s very important to remember that bridging finance can be used for so many other reasons. One area of growth we are seeing at this present time is solving complicated business-related issues.

Last year we saw an increase in our lending to such cases as more and more people become aware of how bridging loans can be utilised. Bridging loans can be trusted to deliver on time and it’s really just another form of alternative financing for the company.

So how can this help your business?

  1. Purchasing additional manufacturing equipment to meet rising demands
  2. Settling larger than expected tax demands
  3. Purchasing larger than normal retail stock
  4. Assist in temporary cash flow problems

This is just a very small sample of uses bridging finance has within the corporate sector. Bridging finance can be in place in a matter of days rather than months that the high street lenders require. So if you think this could help your business call us to talk over your requirements.

Highly Approved

Bridging loan approvals record

The number of bridging loan approvals has increased by almost 25% in the quarter ending December 2015. January has also been a very busy month as well here at Fastest Bridging with our regular clients expressing a need to complete deals as quickly as possible.

Applications for bridging started to show significant increases at the beginning of 2015 and continued to gather pace as the year progressed. Other lending sources still continue to require far too much time to complete on a straight forward case. We are happy to report our recent survey showed a “clean case” with all parties pulling together completes on average within 8 days.

Choosing a lender

There are an increasing number of short term lenders entering this lucrative market and selecting one can be a minefield as certain loans require a regulated lender. For landlords and property investors however, the type of bridging loan required is usually of a non-regulated variety so it’s not essential to use a FCA registered lender.

The majority of reputable bridging lenders are members of the Association of Short term Lenders which is a self-regulating body. They operate a very strict code of conduct to ensure the borrower is protected and fairly treated.

Bridging is a very specialist area of lending and it is very advisable to seek the services of a specialist broker who will advise the correct financing required.

Bridging loan uses

Bridging has a vast array of uses and this seems to be increasing daily. The most popular uses are, refunding of a project, buying at auction and buy-to-let purchases.

The trend for this financial year is cheaper financing and completions quicker than ever before which is great news for the borrower. These are very progressive times for bridging finance with new and existing borrowers reaping the valuable rewards.

Years gone by bridging was seen as a very expensive alternative to traditional lending but now this is just not the case as costs have been reducing annually.

Like too know more?

Our advisers are fully trained and skilled in all areas of bridging finance so please call to discuss any requirements you may have. We look forward to hearing from you.


Giving it Large

Larger lending increasing

Larger bridging loans can be a particularly sophisticated area of the market, which has been increasing in demand over recent years. More investors are seeing the huge benefits of this type of loan and, as a result, lenders are adapting to facilitate such funding needs.

Classifications of large bridging loans vary significantly from lender to lender. Years gone by a larger loan was typically regarded as any amount in excess of £1m, but these days, given the market we would now define a large bridging facility anything upwards of £3m.

The continued rise in house prices, combined with lenders increasing appetite to lend on larger deals, means the average loan size has increased over recent years. In premium property markets such as London and the South East, what would have been deemed as a large loan 10 years ago is very much the norm these days.

The typical clientele for larger bridging comprises of developers and property professionals rather than the consumer. However, recently we are seeing the average consumer make more enquiries as bridging is so flexible and fast to complete.

As a result of the increased activity brokers have a much wider choice of lenders offering various deals. Rates are without doubt an important factor when choosing a loan, but careful selection should be given to the lender used as not all can cope with larger scale lending.

Like too know more?

As we said this is a very sophisticated area of lending, we have fully trained advisers to assist you in making the correct choice for your deal and we look forward to being of assistance to you.