Bridging Finance

Fiducia Commercial Network members have access to a variety of bridging loans.

These include Residential Bridging Loans, Commercial Bridging Loans and Refurbishment Bridging Loans.

Bridging loans are a type of short-term financing option used in the commercial real estate sector.

It provides businesses with quick access to funds to bridge the gap between the purchase or sale of a commercial property and the long-term financing solution.

Commercial bridging finance is commonly used in situations where there is a need for immediate capital to complete a property purchase or sale.

For example, a business may need to secure a property quickly at an auction or take advantage of a time-sensitive investment opportunity. In such cases, traditional financing options may not be able to provide the necessary funds within the required time-frame.

Fast & Flexible

It means members of the Fiducia Commercial Network can provide their clients with a fast and flexible solution to meet urgent financing needs.

One of the key features of commercial bridging finance is its short-term nature. The loan term typically ranges from a few months to a year, although it can be extended in certain cases.

This short-term period allows borrowers to secure the property or complete the sale quickly, with the intention of refinancing or selling the property to repay the loan within the agreed-upon timeframe.

Commercial bridging finance is typically secured against the property being purchased or sold, or other valuable assets owned by the business.

The loan amount is usually based on a percentage of the property’s value, and the interest rates are generally higher compared to long-term financing options.

The loan-to-value ratio and interest rates can vary depending on factors such as the borrower’s creditworthiness, the property’s value, and the lender’s criteria.

Fiducia Sourcing Systems

The Fiducia Commercial Network’s purpose built Sourcing Systems Solutions provides unrivalled access to the most complete set of lenders in the UK and around the world meaning Appointed Representatives have access to the best rates on the market.

It is important to note that commercial bridging finance is considered higher risk due to its short-term nature and higher interest rates.

Borrowers should carefully assess their ability to repay the loan within the agreed-upon timeframe and have a clear exit strategy in place.

This may involve securing long-term financing, selling the property, or generating sufficient cash flow to repay the loan.

Commercial bridging finance can be obtained from various lenders, including banks, specialized bridging loan providers, and private lenders. Each lender may have different eligibility criteria, loan terms, and interest rates, so it is crucial to compare options and choose the most suitable lender for your specific needs.

In summary, commercial bridging finance provides businesses with quick access to funds to bridge the gap between property purchases or sales and long-term financing solutions.

It offers flexibility and speed, but borrowers should carefully consider the costs and risks associated with this type of financing and have a clear repayment plan in place.