Bridging loans, also known as bridge loans or gap financing, are short-term loans that are designed to provide immediate funding to individuals or companies to cover a temporary financial gap. These loans are often used in various scenarios, with property purchases being one of the most common applications. Here are some of the activities that bridging loans are often used to fund

 

CLF has the lender access, experience, and credentials to deliver the best financing solution for you. CLF brokers have a track record of successfully completing ultra-complex deals and multi-million-pound transactions in every asset class. 

 

Bridge loans can vary widely in terms of the amount you can borrow. In the example you provided, borrowers might be able to borrow between £35,000 and £250 million. The specific amount you can borrow will depend on factors such as the lender's policies, your creditworthiness, the value of the property, and the purpose of the loan.

Bridging Loan

What is Bridging Loan

A bridge loan, also known as a bridging loan in the United Kingdom, is a short-term financing option that is commonly used to bridge a temporary gap in funding. It is typically taken out for a relatively short period, ranging from a few weeks to a few years. The primary purpose of a bridge loan is to provide immediate funding while the borrower arranges for larger or longer-term financing.

 

Short-Term Nature

 

Bridge loans are intended to be short-term solutions. They are often used to cover immediate financial needs and are repaid once the borrower secures more permanent financing or completes a specific financial transaction (such as selling a property).

 

Interim Financial

 

Bridge loans act as interim financing, allowing borrowers to proceed with important transactions or projects without waiting for traditional financing options to be finalised.

 

 

Property Transaction

 

While bridge loans can be used for various purposes, they are frequently associated with real estate transactions. They can help buyers secure a new property before selling their existing one, or fund property development and renovations.

 

Flexibility  

 

Bridge loans offer borrowers flexibility in terms of repayment and eligibility criteria. Lenders may focus more on the value of the collateral (such as the property being purchased) rather than the borrower's credit history.

Mergers and  Acquisition

 

After the acquisition, the acquiring company may need additional capital to fund the integration process, which could involve merging operations, systems, or employees. Bridging loans can be used to provide the necessary funds during this transition period.

 

To consider an application for financing, fill out the  form and send it to us by email along with the project brief, or contact our experts