When long-term funding is not yet available, bridging loans for business can be the perfect short-term solution.
Although perceived as expensive, if they enable a purchase to proceed they can in fact save money – and may even enable you to buy it at a favourable price by doing so.
Bridging loans can also be used to finance property conversions and improvements in the short-term while more permanent funding is arranged.
Bridging loans for business
Terms for bridging loans are usually up to two years, but can be longer in exceptional circumstances. Loan to value (LTV) is typically 70%, but again can be higher with additional security.
RedSky has access to a number of specialist funders offering bridging loans for businesses against commercial properties and land. New funders have also come to the market over recent months, including peer-to-peer (P2P) investors.
Urgent funding applications
Our experts also have access to high net worth individuals who can make decisions and act very quickly to fund urgent requests. We have outstanding connections with other professionals, including specialist solicitors, to ensure the process
Depending on the source, we can arrange bridging loans for business within just a few days of the request. In a situation where speed is of the essence, this can mean the difference between a successful deal and none at all.
Short-term finance for business
Projects which we have supported by arranging bridging funding include:
- Purchase of a hotel to include renovation costs
- Buying commercial property at auction pending long-term finance
- Purchase of agricultural land and buildings pending a long-term funding package being put in place
- Buying land for a commercial unit to be built pending long-term funding
- Purchase of an auction property to be renovated and sold