Compare Bridging Loans to Help Your Business

Acquire A Property
Refurbish A Property
Convert A Property
Pay Suppliers
 

It takes minutes to apply, there’s no effect on your credit score and can obtain decisions within 24 hours.

It takes minutes to apply, there’s no effect on your credit score and can obtain decisions within 24 hours.

RLoan Amounts from £25,000 – £15m

RTerms from 1 month – 24 months
RDecision in principle within 48 hours
RInterest from 0.55% per month

Our lending partners

What is bridging finance?

Bridging loans are a finance service provided to help small businesses access quick cash in a short-term contract. They help ‘bridge’ the gap between a debt and a future influx of cash. They’re most often used for buying or renovating property, but can be used for pretty much anything depending on the loan terms.

How do bridging loans work?

If your business can’t access a traditional loan to cover the purchasing of an asset, a short-term bridging loan can help. Highly flexible, and for that reason, expensive, they can help you fund an asset in the short-term before a better loan is accessible.

Once in touch with a bridging lender, you could see a decision in principle within just 48 hours. This gives those who need it, a fast method for obtaining high value loans. Once you have secured the asset, you can then take out a loan with better rates and repay the bridging loan.

Bridging finance helps businesses avoid the tight restrictions and long-winded process of applying for a mortgage. That’s why they’re most popular with property development companies, as a property may become available which needs to be snapped up fast. If the seller needs the deal completed within a short period of time, most mortgages will take too long to administer. Instead, a business bridging loan for a house purchase will provide you the cash you need until the mortgage application has gone through.

How long do bridging loans last?

Most commercial bridging finance options are limited to 18 months before full payment is required. But with high interest rates, usually charged per month rather than over the full loan term, it’s recommended to pay off early to avoid paying large fees.

Compare Bridging Loan options today

R

Apply in Minutes

R

Free, no obligation quote

R

Applying won’t affect your credit score

Prefer to talk? Call us on 020 3355 7462

The risk of bridging loans to businesses

One of the biggest risks of using a bridging loan is the fact you may not be accepted for a secured loan once you’ve financed your asset. This puts your business at risk, with the chance of necessary assets and property being reclaimed to make your payments. If you haven’t considered how you will exit your commercial bridging loan, it’s recommended to hold fire and get assurances beforehand.

What’s the difference between bridging loans and development finance?

Bridging and development finance both provide businesses with short-term injections of cash to help finance assets and buy or renovate property. Once the funds are used and the project has been completed, both types of loan need to be repaid. The big difference is the fact that development finance is restricted to development projects and can last up to 3 years. Bridging finance can be used for much more but will generally only last 18 months. If you’re not quite confident about the risks involved with bridging loans, consider looking for development finance with Aurora capital instead.

Why use Aurora for Bridging Finance?

We know that when it comes to business, time is often of the essence. With access to 15+ lenders and strong relationships, we can provide quick and easy solutions to your finance needs. We will source the most competitive, best non status loans on the market and advise you of the risks involved, including help with an exit strategy if you haven’t yet thought that far ahead.

Speak to our expert team today and find out whether commercial bridging finance is right for you and if so, how much you could borrow. Call on 01371 870815 or email info@auroracapital.co.uk.

Bridging Loans: FAQs

How much does it cost?

All costs such as the arrangement fees and interest are deducted from your loan (or added depending on your preference) when you receive your money. These fees typically include:

  • An arrangement fee of 2%.
  • Interest from 0.55% per month to 1.5% per month.

Do you charge an early redemption or exit fee?

It 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. The minimum is zero.

How Long will it take?

Bridging finance is quick. The speed really depends on the speed of your solicitors. The time scale it takes to complete is often between 5-18 days. This depends on a few factors beyond our control such as 2nd charge consent if applicable and the availability of local surveyors and your solicitors.

What security do you lend against?

  • Residential property
  • Residential developments
  • Commercial property
  • Commercial developments
  • Mixed-use property schemes
  • Offices
  • Retail
  • Land, farms and agricultural
  • Investment property – residential and commercial
  • Auction

Do you lend to people with adverse credit?

Yes.

Often people seek a bridging loan as they have gone over term on their financial commitments and as a result have adverse credit. A bridging loan can be a good tool to help alleviate the financial pressure and allow clients the time and flexibility to return to a stable footing again and improve their credit.

How do I pay the interest?

You can opt to service the interest monthly or you can pay the interest back at the end of the loan.

The interest rate is a fixed figure displayed monthly. The interest does not compound. The interest does not fluctuate and it is not variable.

Not sure what type of business funding is right for your company?

Aurora Capital is here to help. Navigate our range of alternative funding options to find out more.

Get your free, no obligation quote today!

Prefer to talk? Call us on 020 3355 7462

We cover a multitude of finance options.

Aurora Capital is here to help. Navigate our range of solutions to find out more.

Like what we
have to offer?