Why do companies need property bridging finance? The process of acquiring a property is seldom quick and painless. Negotiating your mortgage with a bank can take months, and even once it’s agreed, it can take some time to confirm and ratify the financing.
In the interim, anything could happen. The extended timeframe might not suit owners who wish to sell as expediently as possible. They may receive new, improved offers. Your original financier may back out for spurious reasons, leaving you with little time to find a new source of funding.
For many prospective buyers, the reality is that they must secure a property quickly or risk losing out.
If you’re one of these buyers, property bridging finance can provide you with rapid access to short-term funds. The terms of these loans seldom exceed twelve months, are suited to clients who wish to borrow up to £10m, and have a clearly defined plan for repayment. If you need a little breathing room to negotiate your mortgage, property bridging finance can be a very useful facility.
It’s worth mentioning that these loans, being short-term in nature, have higher interest rates, and are not ideal for customers who anticipate needing long-term financing for a residential or commercial purchase. If you’re looking to fund a purchase over a number of years, you may wish to consider the other kinds of secured business loans.
At Nucleus, our property bridging process involves a standard credit check and a valuation of the property in question. We don’t have a strictly defined list of criteria, but we will try to understand your strategy for managing and repaying the loan: affordability is important to you, and important to us. If it’s a realistic and mutually beneficial arrangement, we’ll typically approve the application – we don’t reject clients on spurious grounds.
A good real-life example of our property bridging finance working in action is one of our clients located in East Anglia. Their company had taken out a mortgage with a bank, which subsequently decided that it was uncomfortable with the terms it had agreed. The institution demanded immediate repayment, and the client did not have sufficient time to find alternative finance. We provided a six-month property bridging finance agreement to cover them until they secured an alternative mortgage.
Another company managed multiple properties and required working capital to secure more. Their bank was reluctant to provide it – and in this fairly typical case, we obliged with a six-month bridging agreement.
Our experienced team is able to support your immediate needs and your long-term business goals: using our bridging finance by no means disqualifies you from using our cash flow finance, invoice finance, business overdraft, or other products.
We consider every application on its merits; we pride ourselves on our transparency; and we have access to multiple sources of funding as well as our own capital, and can guarantee funding once it’s agreed. If you’re looking for property bridging finance, there’s no better option in the industry.
To discuss your property funding needs, get in touch with one of our experts today.