Commercial Bridging Finance
COMMERCIAL BRIDGING FINANCE
This can be used to buy a commercial property at auction for your business, a property that will be a good investment but no tenant, an old industrial unit that needs a full refurbishment or a commercial property and you want to amend the planning. The high street banks aren’t normally an option due to speed, condition and lack of income. This is where commercial bridging can help.
POINTS TO CONSIDER WHEN LOOKING FOR COMMERCIAL BRIDGING FINANCE
- Term of the loan, as lower rates are quoted for shorter terms but if you don’t repay on time, the rates can be much higher;
- Don’t just focus on the interest rate. Add all the costs up to compare one lender to another;
- If using a broker ensure they fully understand bridging and don’t go through a third party. This will increase the costs and be slower;
- What happens if you are late when repaying the loan? Some lenders are flexible others will be in court to repossess before you know it;
- What is your exit, what is your Plan B, C etc. Work on this before you apply for the loan.
- 1-24 month options;
- Up to 75% of purchase price;
- Up to 100% finance with additional security;
- Choice of daily or monthly interest rates;
- Roll the interest into the loan.