Fast Business Bridging Loans

A business bridging loan is a short-term financing solution designed to 'bridge' a temporary funding gap. These loans provide quick access to capital when traditional financing isn't available or would take too long to arrange, typically lasting from a few weeks to 36 months.

Business bridging loans can be used for various purposes, including:

• Property purchases or development
• Auction purchases
• Business acquisitions
• Cash flow management during seasonal fluctuations
• Refinancing existing debt
• Meeting unexpected expenses or opportunities
• Preventing business insolvency

One of the primary advantages of bridging finance is speed. While traditional bank loans might take months, bridging loans can often be arranged within days, sometimes as quickly as 48-72 hours, for straightforward cases with all documentation ready.

Unsecured business bridging loans can be as quick as 24 hours. 

Interest rates for bridging loans are typically higher than traditional bank loans, reflecting their short-term nature and quicker approval process. Rates usually range from 0.5% to 1.75% per month, depending on risk factors, security provided, and loan-to-value ratio.

Unsecured bridging loans can vary, but rates can range from 1.5% to 4% and are normally repaid monthly on a capital and repayment basis. 

Common fees include:

• Arrangement fees (typically 1-2% of the loan amount)
• Valuation fees
• Legal fees
• Exit fees (sometimes)
• Default Interest (sometimes) should the loan fall into breach of contract.
• Administration fees
• Broker fees (sometimes if using an intermediary)

Most bridging loans are secured against property or assets. The lender will take a legal charge over these assets, which they can claim if you default on repayments. Personal and or corporate guarantees may be required

Unsecured business bridging loans take no security as collateral but may require a personal guarantee. Subject to affordability, these loans are typically up to a maximum of £500,000.

A 'closed' bridging loan has a fixed end date, typically when you have a confirmed exit strategy (like a property sale). An 'open' bridging loan doesn't have a definite end date, though most lenders still impose a maximum term (usually 12-36 months).

The loan-to-value ratio is the percentage of the property value the lender is willing to provide. Most bridging lenders offer up to 70-75% LTV for business purposes, though this can vary. Lower LTVs typically result in better interest rates and increased chances of approval.

As the name states, no security or collateral is required, although a personal guarantee may be requested. This loan is only available for trading businesses and is subject to affordability, with terms typically up to 12 months. 

Common exit strategies include:

• Sale of property or assets
• Refinancing to a longer-term loan
• Incoming business funds (receivables or contracts)
• Investment funds
• The clearer and more certain your exit strategy, the more likely your application will succeed.

Yes, it's possible. Bridging lenders focus more on the security provided and your exit strategy rather than credit history. However, bad credit might result in higher interest rates or stricter terms.

There are several repayment options:

• Rolled-up or retained interest (added to the loan and paid at the end)
• Serviced interest (paid monthly)
• Unsecured loans are serviced on a capital and repayment basis
• Part-serviced interest (some paid monthly, some rolled up)
• The principle is typically repaid as a lump sum at the end of the term.

Most bridging loans last between 3-12 months, though terms up to 36 months are available. The key is having a clear exit strategy to repay the loan within the agreed timeframe.