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        • What type of funding options are you looking for?
        • Growth Guarantee Scheme
        • Growth Guarantee Scheme

          A government backed loan to support businesses affected by the pandemic.

        • Unsecured Business Loan
        • Unsecured Business Loan

          Business loans up to £500k, without the need to secure on property or assets.

        • Secured Business Loan
        • Secured Business Loan

          Business loans up to £2M, secured against a UK property by way of 1st or 2nd charge.

        • Asset Finance
        • Asset Finance

          Acquire new or used equipment, machinery or vehicles and spread the repayments over 1-6 years.

        • Merchant Cash Advance
        • Merchant Cash Advance

          Borrow up to 2x your monthly card sales and repay through a small % of your future takings.

        • Invoice Finance
        • Invoice Finance

          Release up to 90% of your owed invoices, either through a selective or whole debtor book facility.

        • Bridging Loans
        • Bridging Loans

          A short term facility, allowing you to raise quick capital by securing on a UK property.

        • Revolving Credit Facility
        • Revolving Credit Facility

          A pre agreed credit facility, allowing you to dip in and out for future funding requirements.

        • What type of funding options are you looking for?
  • About
  • Knowledge Hub
  • Contact Us
        • What type of funding options are you looking for?
        • Growth Guarantee Scheme
        • Growth Guarantee Scheme

          A government backed loan to support businesses affected by the pandemic.

        • Unsecured Business Loan
        • Unsecured Business Loan

          Business loans up to £500k, without the need to secure on property or assets.

        • Secured Business Loan
        • Secured Business Loan

          Business loans up to £2M, secured against a UK property by way of 1st or 2nd charge.

        • Asset Finance
        • Asset Finance

          Acquire new or used equipment, machinery or vehicles and spread the repayments over 1-6 years.

        • Merchant Cash Advance
        • Merchant Cash Advance

          Borrow up to 2x your monthly card sales and repay through a small % of your future takings.

        • Invoice Finance
        • Invoice Finance

          Release up to 90% of your owed invoices, either through a selective or whole debtor book facility.

        • Bridging Loans
        • Bridging Loans

          A short term facility, allowing you to raise quick capital by securing on a UK property.

        • Revolving Credit Facility
        • Revolving Credit Facility

          A pre agreed credit facility, allowing you to dip in and out for future funding requirements.

        • What type of funding options are you looking for?
  • About
  • Knowledge Hub
  • Contact Us
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Apply For a UK Bridging Loan To Help You
Grow Purchase Stock Employ Staff Expand Pay Suppliers

Bridging loans can help you ‘bridge the gap’ between an immediate cash requirement and a future influx of cash.

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Happy woman applying for a bridging loan

6.90%

Interest rates per annum

£100,000 +

Terms from 1 month – 6 years

UK Based

No early settlement fees

£5k - £500k

Funding requirement

Our lending partners

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Bridging Loans

A bridging loan can be a fast short-term solution to help your business cover an immediate cash need while you wait for incoming money. Learn everything you need to know about how they work, and compare rates and funding options from top bridging loan lenders with Aurora Capital.

What is a bridging loan?

A bridging loan is a short-term loan usually used to help a business buy or renovate a property. 

 

It is designed to bridge the gap between a debt and incoming cash, for example, when you’re waiting for the funds from a sale to come through. 

 

Bridging loans are a type of secured loan, which means you will need to put up an asset as collateral.

Key features of bridging loans

  • Suitability: Any business that has a commercial or residential property to secure against.
  • Purpose: Bridging loans can have several purposes, but are commonly used for property refurbishments.
  • Amount: Bridging finance loans range from £25k – £15m. We can usually lend up to 75% LTV.
  • Term: Up to 24 months. This will depend on the equity left in the property and how much you need.
  • Cost: Interest rates from 0.55% per month.
  • Security: Security can be taken as either a 1st, 2nd or equitable charge of a residential or commercial property depending on your circumstances.
  • Speed: Decisions can be made within 24 hours.

Get your free, no
obligation quote Today!

How much do you want to borrow?

£10k
£ 50000
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Prefer to talk? Call us on 020 3355 7462

Securing business funding:
How it works

Aurora Tell us more about yourself

1

Apply Online in minutes

We cater to any sized business, so to apply for business funding, we only need you to share basic information about your company. Your application will take a few minutes, and our experts are always happy to assist with any questions you have about specific loan types or alternative finance options.

2

Get Matched in hours

Our LendTech technology will compare our trusted panel of lenders and match you with your most suitable finance option. Each business funding option is different, and we’ll help to make sure you’re fully clued up on the terms and conditions as well as indicative repayment details.

Aurora | Get Matched In Hours
Aurora | Get Funded In Days

3

Get Funded in days

One of our funding specialists will discuss the available options with you and guide you through the process from application to approval. Once approved, the funds can be deposited in a matter of hours.

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Business Loan Calculator

Loan amount
£10k £500k
Over How Long?
Very poor risk can only borrow for 1 year
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Monthly repayment
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Completion fee
Interest -
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For illustration purposes only. Our experts will calculate the rate you may be offered based on your individual circumstances. This is not an offer or quote for your business.

Navigate our range of business
funding options to find out more

We understand that timing is key when you’re looking to find funding options for your business, so our process is as quick and as streamlined as possible.

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bridging loans FAQs

Yes, bridging loans are often popular for individuals or businesses with adverse credit. They can be a good way to pay off bad debts, giving you time and flexibility to regain control of your finances.

 

Lenders are willing to offer bridging loans to applicants with poor credit, provided they have a clear exit strategy for repaying the loan.

An exit strategy is a plan detailing how you’re going to pay the bridging loan off. Common exit strategies include:

 

  • Obtaining a mortgage
  • Getting a secured loan
  • Completing the sale of a property

 

Most bridge loan lenders want to see your exit strategy as part of your application. At Aurora Capital, we can help you define a realistic and watertight exit strategy.

A bridging loan can provide funds relatively quickly. It is often needed by those who need funds fast, so lenders are usually willing to release the money within a matter of days.

 

However, the exact timeframe will depend on your application and the lender you choose. If your request is complex, it could take longer for you to receive the funds.

 

When you apply with Aurora Capital, many of our lenders can make a decision in principle within just 48 hours. This gives those who need it a fast method for obtaining high-value loans.

Yes, it’s possible to repay your bridging loan before the end of the term. Open bridging loans don’t have a set repayment date, so you should aim to pay this type of loan as soon as possible. 

 

If there is an exit fee or early redemption charge, the typical amount would be one month’s interest payment or 1% of the loan.

The cost of your bridging loan depends on several factors, including your credit score, the interest rates available, and the value of what you have secured the loan against. 

The fees for a bridging loan typically include:

 

  • An arrangement fee of 2%
  • Interest from 0.5% per month to 2% per month

 

Bridging loan interest rates are typically charged monthly, unlike most business loans, which are charged annually. This means they can be much more expensive. For example, a monthly interest rate of 2% is the equivalent of nearly 27% annually. 

 

You may also need to pay for a valuation of the property offered as security, typically around £400.

 

You can pay the interest on your bridging loan monthly or roll it up and add it to the final settlement figure at the end.

This depends on the deal and the safety of the planned exit route. If there is an exit or early redemption charge, the typical amount would be one month’s interest payment or 1% of the loan. The minimum is zero.

Below is a list of the security we lend against with bridging finance at Aurora Capital:

 

  • Residential property
  • Residential developments
  • Commercial property
  • Commercial developments
  • Mixed-use property schemes
  • Offices
  • Retail
  • Land, farms and agricultural
  • Investment property – residential and commercial
  • Auction
Prefer to talk? Call us on 020 3355 7462
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