One of the most common reasons for taking out a bridging loan is when purchasing a property, as it is a way of accessing full funds without having
to go down the traditional mortgage route. In a case such as this, the property itself will be put down as collateral with the lender. You may
find yourself in this situation if your company is expanding quickly and you are looking to purchase new offices.
Typically a bridging loan can be secured within a matter of days, or even within 24 hours depending on the lender, and is therefore ideal for quick
turnaround projects when there is an urgent need for cash and there is security available.
Bridging finance for property development
Bridging loans are also a useful tool as a form of short-term borrowing when a property development business only requires the
funds for a short amount of time, usually whilst the property is refurbished, extended or some other form of value being added once it has been
Bridging finance could also be of assistance in providing all of the funds required to purchase a property at auction and to fund the development process,
which will be repaid once the property is sold shortly after acquisition.