Commercial Bridging Loan Providers That You Can Trust

A commercial bridging loan is a short-term loan secured against a commercial property; used when there is a gap in financing that needs filling quickly. They can be used either to purchase property as an investment, for developing business premises or to temporarily fund business expenses whilst awaiting payment from a client.  

Those who borrow using a commercial bridging loan must demonstrate that they have a clear strategy for repaying the loan, such as switching to a commercial mortgage, refinancing the loan onto a But-to-Let mortgage or selling the property.  

Some of the expenses our clients have previously used our commercial bridging loans for include: 

• Purchase of commercial premises 
• Commercial property development & renovations (including conversions) 
• Commercial property refurbishment 
• Stock purchases 
• Business bill payments (e.g., taxes) 
• Staff salaries and wages 

Our commercial bridging loan lenders work with a wide range of commercial properties, including (but not limited to): 

• Offices 
• Semi-commercial properties 
• Retail units 
• Public houses 
• Industrial units 
• Petrol stations 
• Care homes 
• Warehouses 
• Garages & mechanic stations 
• Medical clinics 
• Schools 
• Farms & agricultural buildings 

There is often concern that commercial bridging loans are unsafe due to them belonging to the ‘unregulated’ market (private companies outside of banking). However, ‘unregulated’ does not mean unsafe, as private lenders such as Signature Property Finance are held to high market standards of self-regulation.  

Though not guaranteed, there are however risks to commercial bridging loans that you should be aware of, including repossession if your exit doesn’t pay out in the agreed timeframe, delays that can cause higher fees, higher interest rates than other financial products etc.  

If you are concerned about any of these, then get in touch by email or by calling us on 0121 746 3130 to speak to one of our experts. Our commercial bridging loan lenders can work with you to assess the level of risk in your proposed deal and suggest solutions for minimising it. 

Some of the benefits of commercial bridging loans include: 

• A suitable option for when you need funding quickly 
• No hidden costs or nasty surprises – we are transparent about all our fees and charges from the first consultation 
• A good option for limited companies, foreign nationals and others struggling to get a loan from high street banks 
• A diverse loan type that can be used for a variety of different developments and purchases (see ‘When would you use a commercial bridging loan?’) 

To be applicable for a commercial bridging loan, the main purpose of the property needs to be over 40% commercial. For example, if you were purchasing a retail unit that had a residential apartment situated above it, then the retail unit would need to cater for over 40% of the property’s value. 

Applicants will also need to be able to supply the following: 

• Last 3 months bank statements 
• Evidence of income/accounts & SA302 
• Certified copies of ID 
• Credit report 
• (For companies) Personal guarantee from Director 
• Projected rental income (if re-financing) 

Yes you can! However, do note that to apply for our commercial bridging loan, the minimum loan requirement is £100,000. Small business owners should be able to demonstrate a clear exit strategy for how they plan to repay the loan. However, if this is something you do not have then don’t worry - advisors can assess your situation and offer you payment solutions should you be concerned about risk. 

The average turnaround of our loan process from application to approval is 15-20 days. We can review applications and make fast decisions thanks to our in-house legal team and established links with surveyors.  

Once we receive your enquiry, we will make an indicative offer based on your estimate of the value of the property you are offering as security. 

If you accept this offer, we will arrange for a valuation of the property, whilst instructing solicitors to fast track the necessary legal formalities. 

We’ll stay in touch throughout the process and let you know how your application is progressing to ensure you remain in control of the timescale. 

Some of the properties our commercial bridging loans can contribute towards include (but not limited to): 

• Offices 
• Semi-commercial properties 
• Retail units 
• Public houses 
• Industrial units 
• Petrol stations 
• Care homes 
• Warehouses 
• Garages & mechanic stations 
• Medical clinics 
• Schools 
• Farms & agricultural buildings 

If you can prove you can afford it (via proof of income) then yes, you can pay the interest in monthly instalments alongside the loan rather than just adding it. 

Information on how to apply for one of our commercial bridging loans can be found here.