Updated: Nov 22
Welcome to Approved Finance Groups Quick Guide to everything you need to know about Bridging Finance. This guide serves as a powerful insight into the world of commercial real estate. Whether you're an experienced investor or a first-time developer, we offer valuable insights on how bridging finance bridges the financial gap, expedites projects, and maximises returns.
Our guide addresses popular questions from our specialist property finance team, aiming to help you understand bridging finance and its potential benefits for you and your business.
Table of Contents:
FIRST OF ALL, WHAT EXACTLY IS BRIDGING FINANCE?
Bridging Finance for commercial property is a short-term loan solution designed to bridge the financial gap when purchasing or renovating commercial real estate. It provides quick access to capital, typically secured against the property, enabling borrowers to seize lucrative opportunities without waiting for long-term financing.
This flexible funding option allows investors and developers to expedite commercial property projects, maximise returns, and swiftly capitalise on market conditions. Learn more about bridging finance for commercial property and its benefits here.
HOW MUCH DEPOSIT IS NEEDED FOR A BRIDGING LOAN?
The required deposit for a bridging loan is typically around 20-30% of the property's value. However, deposit requirements can vary among lenders, and it's advisable to consult with a finance broker or lenders directly to determine the specific deposit amount needed for your bridging loan.
HOW LONG DOES IT TAKE TO GET A BRIDGING LOAN?
The time it takes to get a bridging loan can vary depending on factors such as the lender's processes, the complexity of the loan application, and the availability of required documentation. In general, it can take anywhere from a few days to a few weeks to secure a bridging loan.
CAN YOU GET 100% BRIDGING LOANS?
While it is rare, some lenders may offer 100% bridging loans. Lenders typically require some form of security or equity, such as additional properties or a guarantor, to mitigate the risk.
WHAT CAN I USE A BRIDGING LOAN FOR?
A bridging loan can be used for various purposes, including purchasing a new property before selling an existing one, financing property renovations or refurbishments, bridging gaps in property chains, funding property development projects, or seizing investment opportunities that require quick access to capital.
SHOULD I GET A BRIDGING LOAN?
Bridging loans offer a significantly faster funding solution compared to mortgages, making them an excellent alternative for those seeking quick access to capital. However, borrowers should carefully consider the costs, risks, and their ability to repay the loan before deciding if it's worth pursuing.
WHY USE APPROVED PROPERTY FINANCE?
Businesses should utilise Commercial Bridging Finance by Approved Property Finance for its reliable and expert service. With quick capital access, flexible terms, and a trusted reputation, Approved Property Finance enables businesses to bridge financial gaps, seize opportunities, and expedite commercial property projects with confidence and ease.
HOW DOES IT WORK?
We keep our business finance options transparent - no hidden fees or nasty surprises. This is business finance made easy. Our no-obligation application won't impact your credit score.