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Bridging Finance

What is Bridging Finance?

Bridging finance is a type of short-term loan, typically lasting 3 to 36 months, that can be used for different purposes until long-term funding, sale of a property, or when the next stage of financing becomes available.

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The typical maximum Loan-to-Value ratio of a bridging loan ranges from 60% to 80%.

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Bridging finance can be used by both individuals and businesses, usually lasting less than 12 months. They tend to offer a maximum of £5 million worth of lending, though it may be possible to get larger loans through specific lenders.

 

How much you are able to receive will vary depending on the security you offer, as well as the lender you choose.

 

Bridging loans come in two types: open and closed. An open loan is where there is no fixed end date to the loan, but it is expected that you will pay the balance back within the agreed set term. This is ideal if you aren’t quite sure how long you will need the finance for: for example, if you know you have long-term funding coming in, but don’t know when this will start exactly. Alternatively, a closed loan will have a set end date. This means you will have an exit from the finance in place, which usually means lenders are willing to offer lower interest rates as they know they will be repaid in the agreed timeframe.

 

As per any loan, you will need to apply for bridging finance. Bridging finance is secured, so you will likely need to have some form of assets to use as collateral as well as a clear strategy on how the bridging finance will be exited e.g. a property sale.

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What can Bridging Loans be Used For?

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When compared to other sources of financing, bridging loans have numerous advantages. When funds are needed for a short period of time, they are frequently the most cost-effective way to raise the necessary funds. Furthermore, they are simple to set up, offer broad lending criteria that allow approvals to be provided swiftly without thorough investigations, and they can be secured on a variety of properties, including some that are inappropriate for other lenders.

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Property Auction Finance

Bridging Loans for Developments

Land Bridging Finance

Residential Property Bridging (Please note we do not offer regulated bridging)

Commercial Bridging Loans

Semi Commercial Bridging Loans

Refurbishment Finance and Incomplete Property Loans

Resolve short-term cash-flow issues in your firm

Renovating, converting, or restoring properties

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Contact us to discuss the bridging finance you require and to chat with a member of our team who is familiar with your company's objectives.

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PBFC UK LTD is a proud member of the NACFB

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Room 16-17

Wrens Nest Business Centre

Wrens Nest Road

Glossop, Derbyshire

SK13 8HB

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PBFC UK is the trading name of PBFC UK LTD Company Registration Number 05089377. PBFC UK is registered with the ICO (Information Commissioner’s Office) Registration Number ZA111905. PBFC UK LTD is a proud member of the NACFB, registration number 29189.  PBFC UK is Commercial Finance Brokerage and not a Lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent financial advisors and so are unable to provide you with independent financial advice.  PBFC will receive payment or benefit from the finance provider if you decide to enter into an agreement with them. Investors are required to seek their own financial advice. This amount varies between lenders.

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31 Simons Close, Glossop, Derbyshire, SK13 6NE

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