Commercial bridging finance on the increase

Property transactions will always continue to be the main business for bridging lenders but we are seeing more and more different uses. In the past six months we have seen an increase of over 50% in lending to companies and individuals looking to use short-term finance for something other than property purchases.

History has shown there will always be a place for fast short term funding whether it be a rising or falling market place. Short-term lenders are now even seeing an increase in high-street bank referrals, as the banks continue to ignore this type of financing. Bridging finance companies once were considered competition to banks but not any longer it would seem.

Bridging finance is now being recognised by banking advisors as complementary to traditional long term finance.  Advisors are recommending bridging to businesses going through takeovers or mergers, as it’s often necessary to raise capital very quickly. 

The same applies to management buy-ins or buy-outs, funding can be raised rapidly based on the existing business’s balance sheet or directors assets. This will allow time for longer term funding to be put in place. 

The last few years have been very challenging for many businesses, bridging has provided a lifeline in many cases.  Whether it’s to deal with cash-flow issues or pay a tax bill, the speed and flexibility which bridging finance offers can make all the difference.

If you need any assistance with your business or commercial funding please do give one of our experts a call, we will be happy to assist in any way we can.