Explore more insights

business loan, bridging loan, small business

Common uses for bridging loans: unlocking opportunities for your business

Capitalise Jun 30, 2023

Bridging loans are a popular financing solution for businesses in need of short-term funding to bridge the gap between transactions or projects. Bridging loans offer a range of benefits, enabling businesses to overcome cashflow challenges, unlock value from assets, and propel their growth.

Here are some common uses for bridging loans and how they can be used to help your business. 

 

  • Acquiring and developing a property

Bridging loans are frequently used by businesses in the property sector to facilitate property acquisitions and development projects. When purchasing commercial property, timing is often critical. Bridging loans can be used to bridge the gap between the purchase and the securing of a long-term finance, such as a commercial mortgage, or the sale of an existing property. Similarly, for property developers, bridging loans can provide essential funding during construction or renovation phases, allowing them to move forward with projects quickly and efficiently.

 

  • Auction purchases

Property auctions offer unique opportunities for businesses to acquire property at potentially cheaper prices. However, successful bidders are typically required to complete the transaction within a short timeframe, often 28 days or less. Bridging loans can be an ideal solution, offering fast access to funds and enabling businesses to secure the purchase without delays or complications.

 

  • Business expansion and growth

When businesses identify opportunities for expansion or growth, they will need quick access to capital. Bridging loans can provide the funds to fuel business expansion plans. By using bridging loans, businesses can seize growth opportunities without the constrains of lengthy application processes.

 

  • Refurbishment and refinancing

If a business needs to invest in refurbishing their premises to enhance customer experiences, update facilities, or rebrand their image, a bridging loan can help. 

 

  • Bridge finance for buy-to-let investors

Buy-to-let investors often use bridging loans to secure property purchases quickly and efficiently. By accessing bridge finance, investors can secure properties, renovate them, and then refinance with a traditional buy-to-let mortgage. This strategy allows investors to act swiftly in competitive markets and maximise their return on investment.

 

Whether you want to acquire a property, expand your business or seize time-sensitive opportunities, bridging loans offer a flexible solution that enables access capital quickly and efficiently.

 

At Capitalise, we work with a panel of bridging lenders that can help your business. Get started today and compare bridging lenders. 

finance
profitability
help
alternative finance
invoice finance
fintech
news
accountant
case study
trade finance
contract finance
working capital
startup loans
refinancing
fashion finance
merchant cash advance
future accountant
product of the month
women in funding
partner of the month
business tips
accountants
accounting
product
forecasting
live session
accountex
2019
capitalise
funding
monitor
ai
international women's day
covid19 coronavirus
corporate finance
accounting firm
m&a
asset finance
hire purchase
businesses
credit score
rls
business funding
business credit score
south africa
business
adviser
small business
business loan
property finance
commercial mortgage
credit imporvement
spring budget 2023
small businesses
spring budget
ccj
inflation
commercial mortgages
trade debtors
cash flow
truck finance
late payments
lorry finance
manufacturing
building a financial safety net
healthcare
trade debtor days
overdraft
bridging loan
credit checks
interest rates
overtrading
templates
balance sheet
construction
bad debt
company credit checks
debt collection
credit control
check company credit
business loans
instant offer
credit scores
credit review service
economy
company credit check
commercial property
Follow Us
Sign Up to Receive Updates

Related content

Signup to our newsletter

Have insights about the accounting community sent straight to your inbox. Sign up to our newsletter.