About Bridging & Short Term Loans
Behind every bridging or short term loan there is a story to tell. Tell us what you are trying to achieve and we can do a far better job on your behalf.
Sometimes our clients need money fast
It could be home improvements or a commercial bridging loan related to their business such as securing a profitable opportunity or paying off a tax bill. They might not be able to borrow from their mortgage company or get an unsecured loan because the property is in a mess or they just don’t qualify. They might not even be able to afford the repayments of a new loan right now. What they do know is that if they could get the cash it will repay them in the short term – this is where a bridging loan or short term asset loan can help.
What is a Bridging Loan?
Well, bridging loans are normally secured on property (including commercial property and land) and often the interest payments can be rolled in to the loan so there are no repayments. Asset loans can be secured on cars, boats, valuable furniture, jewellery, paintings etc. There are no affordability checks or credit checks. Neither are the cheapest form of borrowing but can yield fast results for those who can’t obtain the finance they need through a conventional source yet need short term cash to plug a gap.
- Business Funds: your business needs short term working capital
- Auctions: purchasing property at an auction
- Temporary cash flow problems: when you require cash urgently
- Tax Liabilities: finance those unexpected tax payments
- Property Development: for building residential, commercial and industrial units
- Land Purchase: with or without planning permission
- Property Refurbishment: upgrade your residential or business premises
- Buy-to-let: don’t miss out on an investment opportunity
Below are some more detailed examples of clients where short term finance made the difference. Might it make a difference for you?
Raising a deposit to purchase a property but can’t sell current property
A bridging loan secured on the property being sold raised enough cash to complete on the purchase until the previous property was sold.
A fast loan to buy a property in poor condition at auction
When buying at auction you need to know the money is there so you can buy, refurbish and then remortgage the property on to good terms. This is common practice for those buying properties to let out. By securing a bridging loan over other property owned, the additional property could be purchased and a remortgage arranged within a few months to pay off the bridging loan.
Residential Bridging loan to help refurbish another property
Our client was looking for a short term development loan to purchase, refurbish and then remortgage a semi commercial property. We proposed a second charge bridging loan on the borrowers main residence at a rate of 0.95% per month allowing him to do what he wished faster and cheaper.
Bridging loan on agricultural field delays “the taxman”
Our client was about to be forced to sell his house undervalue by “The Tax Man” to pay outstanding VAT. We obtained offers for a bridging loan on an agricultural field to keep HMRC at bay so the main residence could be marketed properly at full value.
Invoice factoring covers payroll
Our client had a cash flow problem and needed to raise £20K to payroll his business whilst he waited for a slow payer on a large outstanding invoice. With no equity he had limited options and not paying his staff was commercial suicide. An invoice factoring solution was proposed allowing our brokers’ client to borrow against his outstanding invoice and cover the temporary short fall in cash flow.
Loan secured on car pays tax bill
Outstanding tax is a common purpose for a loan. The borrower had no available equity but only needed the money short term. A short term asset loan secured on his car was cheaper and faster than a traditional bridging loan.
Money needed in days to secure lucrative business deal
Our client needed to raise £30,000 in a few days to buy bankrupt stock which he knew he could resell quickly and make very substantial profits. To avoid fees and exit charges he offered his luxury car as security for a three month loan, making the whole deal cheaper and faster than a bridging loan secured on bricks and mortar.