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Business Finance

Commercial bridging loans

Short-term property-backed finance can help businesses complete time-sensitive transactions while arranging a longer-term solution or another clear exit strategy.

Finance at a glance

Key details to help you understand this finance option at a glance.

Purpose

Short-term property-backed commercial finance

Finance amount

Subject to property value, loan-to-value, exit strategy and lender criteria

Finance term

Short-term facility; exact duration depends on the lender

Suitable for

Businesses and property investors with a time-sensitive requirement and credible exit strategy
Key note
Bridging finance is generally more expensive than conventional longer-term borrowing and is normally secured against property. A clear exit strategy is essential.

What is a commercial bridging loan?

A commercial bridging loan is short-term finance secured against property or land and designed to bridge a temporary funding gap. It is commonly considered where a transaction needs to complete before longer-term finance, a sale, refinancing or another planned source of repayment is available. Because bridging finance is short term and can involve higher interest and fees than traditional borrowing, both the total cost and exit strategy should be considered carefully.

How does commercial bridging finance work?

The lender will assess the property being offered as security, the funding requirement and particularly how the facility will be repaid.
01

Define the requirement

Establish the amount required, purpose and completion deadline.
02

Assess the security

The property or land proposed as security is considered and may require valuation.
03

Confirm the exit strategy

Demonstrate how the bridging facility is expected to be repaid.
04

Legal work and completion

Subject to underwriting, valuation and legal requirements, the facility can complete.

What can commercial bridging finance be used for?

Commercial bridging loans are generally used for property-related or time-sensitive funding requirements.

Commercial property purchase

Complete a purchase where longer-term finance is not yet available.

Auction purchases

Support transactions with short contractual completion times.

Property refurbishment

Provide short-term funding while eligible property works are undertaken.

Chain breaks

Bridge a temporary gap between a purchase and an expected property sale.

Refinancing

Provide temporary finance while a longer-term funding arrangement is put in place.

Potential benefits of commercial bridging finance

Bridging can provide flexibility where conventional long-term finance does not match the timing of a transaction.

Short-term structure

Designed specifically for temporary funding requirements.

Property-based security

The lender can consider the value and nature of the property as part of the transaction.

Transaction flexibility

Can help bridge the period between purchase and a defined repayment event.

Multiple exit strategies

Depending on circumstances, repayment may come from sale, refinance or another acceptable source.

When might commercial bridging be suitable?

Bridging is usually appropriate only where the requirement is temporary, suitable security exists and the repayment strategy is credible.

Property investors

Investors completing time-sensitive commercial property transactions.

Businesses purchasing premises

Companies needing temporary finance before longer-term arrangements complete.

Developers and refurbishers

Eligible borrowers undertaking property works before sale or refinance.

The Somerset process

A straightforward, supportive process from initial discussion to completion.

01

Understand

We take time to understand your business, your goals and your finance requirements.

02

Explore

We assess your requirements and explore suitable finance options from available lenders.

03

Apply

We support you through the application process and liaise with the lender as required.

04

Complete

Once the finance is approved and completed, you can move forward with your business plans.

Why Somerset Financial?

Straightforward support to help you explore suitable business finance options for your circumstances.

Finance options explored

We help you explore finance options based on your business requirements and circumstances.

A personal approach

We take time to understand your business, objectives and funding requirements before exploring suitable options.

Tailored to your business

Finance requirements vary from business to business, so we focus on options relevant to your individual circumstances.

Clear guidance

We explain the available options and process clearly, helping you make an informed decision.

Support through the process

We support you through the application process and liaise with the finance provider where required.

Focused on your objectives

Whether you are investing, replacing equipment or managing cash flow, we focus on finance options aligned with your business objectives.

Commercial bridging loan FAQs

Important considerations before entering into short-term bridging finance.

Related business finance options

Explore other finance options that may also be relevant to your business requirements.

Ready to discuss your business finance requirements?

Speak with Somerset Financial about your requirements and explore finance options that may be suitable for your business.

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