If business owners can resort to a cash flow loan when their funds fall short, property owners resort to bridging loans. Not just property owners, landlords, property developers and anyone who needs quick money would be familiar with this type of loan.
As their name implies, a bridging loan “bridges” the gap between two payments for a property. Most of the time, a bridging loan is usually chosen to pay off debt while waiting for a more mainstream credit or income to cover the cost. Other times, they are used to reinforce existing loans for the property or function as any short-term loan.
A Bridging Loan is a short-term loan and there are many types of bridging loans to avail.
- Development/property bridging loans
- Auction purchase bridging loans
- Finance for light and heavy refurbishments
- Business loans
- Mezzanine financing
What makes mezzanine financing or loan different is that it is not secured by a property. Rather, it is secured by ownership in a company that owns the property. This is the set-up for many borrowers who need more money compared to what other bridging loans can give, so they use interest in a company as their collateral.
N & T Consultants can help you if you’re looking for a cost effective Commercial bridging loan.
Our team will speak with you to understand what your business requires and aim to give you a written decision in principle (DIP) quickly, to enable you to find out what funds are available to your business at no cost, no obligation.
As part of our continued commitment and dedication we will assist in the whole process from A to Z, right through to the exit strategy – paying off the bridge.
Case Study 1 for Bridging Finance - £200k secured in days to save business from being repossessed
An existing client truly tested our ‘know how’ and speed on this occasion.
Our client had a £1,000,000 plus valued spa/restaurant/wedding venue and required £120,000, in 10 days to pay the first charge holder, to avoid repossession. And a further £80,000 to complete the building of a deluxe cottage to offer its wedding customers, thereby increasing profits substantially.
The challenge got more onerous, as the owner did not have any record of credit and therefore NO credit file/history, moreover, he was not even on the electoral roll register ever!
Fortunately, we gladly obliged to the challenge and secured an offer to the client in one working day, without the need to look at financial projections, bank statements and credit record history.
The £200,000 certainly gave the client time and breathing space with regard to the first charge and commissioned N & T to put in place a longer term commercial mortgage to exit the bridge and provide further solutions to fund the other two cottages for the business.
Case Study 2 for Bridging Finance - £480k secured in days to save business from being repossessed
The client owned a Detached Farmhouse with connecting land with a reclamation yard and 4 redundant hen houses/
However, with his current bank, he had a dispute which resulted in the bank demanding full settlement.
The high street bank also demanded the outstanding loan, because of the adverse credit registered against the client. For this reason the client could not get any finance agreed.
The client was asset rich but cash poor and therefore we sourced a Bridging lender to lend at 65% to 70% LTV, despite the adverse credit history and the threat of litigation from the bank. We raised £480,000 and completed in 4 weeks.
N & T’s funding solution stopped the bank from repossessing his property and now the client has redeveloped the site into 9 luxury detached house with a Gross Development Value of £7,000,000.
Look no further than N & T Consultants Ltd to help your business with a bridging loan.
Call us NOW for Bridging Loan solutions on 0333 5777 220, in the STRICTEST of confidence or complete our online contact page for immediate help and a NO COST, NO OBLIGATION telephone consultation or meeting at your convenience.
We look forward to assisting you!Go back