Bridging finance has become an increasingly popular funding solution for businesses and investors across the UK. The idea is that with commercial bridging loans, the money you need can be accessed quickly, efficiently and at an affordable price. Often arranged within a matter of days, bridging loans are typically repaid in 6 to 18 months.
The growing popularity of bridging finance is largely attributed to their flexibility, which exceeds that of more typical loans and mortgages by a significant margin.
What’s more, we’re living in an era where 100% mortgages from mainstream lenders have been confined to the history books. Despite consistent demand for 100% financial solutions – typically in the commercial lending sphere – major lenders are no longer willing to offer such products.
Nevertheless, 100% bridging loans are becoming more readily available than ever before. Hence, the services of bridging loan specialists have found their way into the everyday lives of thousands of investors, entrepreneurs and business owners across the UK.
The Growing Popularity of 100% Bridging Finance
One of the most appealing aspects of bridging finance is the way in which the borrower can use existing business assets as collateral. Rather than securing funds exclusively on their primary place of residence, everything from machinery to vehicles to land can be used to secure bridging finance.
While most bridging lenders limit their services to a maximum loan value of 75%, this still provides scope for other assets to be used to secure the remaining 25%. By securing a 100% bridging loan, no deposit is required and no further funds need to be sourced. Depending on the size and nature of the project, this can be an absolute godsend for investors and business owners.
Purchasing Properties Under Market Value
The on-going uncertainty regarding the UK’s departure from the EU has sent shockwaves up and down the British property market. Over the past year in particular, a growing number of homeowners and commercial property owners have found themselves in positions where they’ve needed to sell their properties as quickly as possible.
Whatever the reason for selling the property, it could translate to an exceptional business opportunity for the forward-thinking investor.
Another enormous benefit of bridging finance is the way in which bridging lenders issue loans against the market value of properties, as opposed to the purchase price. This provides investors with significantly greater scope for raising the funds needed to purchase the property, while also leaving enough left over to finance subsequent renovations and repairs. Again, the opportunity to obtain a 100% bridging loan eliminating the requirement to pay a deposit or raise additional capital of any kind.
Poor Credit Commercial Bridging Loans
Bridging finance is uniquely flexible and can be used for almost any legal purpose whatsoever. More importantly, a bridging loan application processes and general lending criteria are exponentially simpler than those of more traditional loans.
In the vast majority of instances, bridging lenders impose no credit checks and may also demand no specific proof of income. Instead, it’s simply a case of confirming that the applicant’s collateral is sufficient to cover the cost of the loan. If so, the rest is inconsequential.
This, in turn, can open the door to flexible and affordable commercial borrowing for applicants with imperfect credit scores. The same applicants who would typically be counted out of the running by mainstream lenders.
Just three of the benefits of 100% bridging finance, which is quickly becoming the flexible funding solution of choice for today’s business.
Article by iConquer
