Obtaining finance to fund commercial property purchases can often be difficult and long winded which is where commercial bridging loans become the most viable solution.
Commercial bridging loans offer a short-term loan that can bridge the gap in funding and are often used whilst longer-term funding can be obtained.
It is a secure loan that is secured against the property on a first charge or sometimes second charge basis. It can also be used to fund short-term needs whilst the property is being developed and sold. We have looked at what a range of commercial lenders has to offer below.
The table below gives a quick comparison of the top UK providers for commercial bridging finance and loans.
| Company | Min loan amount | Max loan to value | Max term |
|---|---|---|---|
| West One Loans | £30,000 | Not stated | 18 months |
| Lombard Business Loans | £100,000 | Not stated | 24 months |
| Nucleus | £25,000 | Not stated | 24 months |
| 365 Business Finance | £100,000 | 75% | 18 months |
| Octopus Property | £100,000 | 70% | 24 months |
| Together | £26,000 | 75% | Not stated |
| Masthaven Bank | £100,000 | 60% | 18 months |
| Lendinvest | £75,000 | 75% | 18 months |
| Greenfield Capital | £26,000 | 100% | 12 months |
| United Trust Bank | £75,000 | 70% | 12 months |
| Oblix Capital | £50,000 | 75% | 12 months |
| Hope Capital | Not stated | 100% | Not stated |
| Hunter Finance | Not stated | Not stated | 12 months |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Topics
1. West One Loans
Some of the features and benefits of West One Loans’ commercial bridging finance and loans.
- Offered on commercial and semi-commercial properties
- Available for investment and multi-occupancy properties
- Suitable for farms, agricultural properties and land
- First or second charge bridging loans
- Minimum 1-month term
- Maximum 18 months
- No exit fees
- Will lend to a variety of businesses
- Nationwide coverage
- Will consider adverse credit
West One Loans are a specialist finance loan provider who offers a commercial bridging loan product that is available to finance commercial and semi-commercial properties including investment opportunities. The loan can be used for a variety of properties including multiple occupancy, farms, agricultural properties and land.
West One Loans’ commercial bridging product is available across the country as a first or second charge against the property. They provide bridging loans that can be for 1 month to 18 months with no exit fees. They will lend to individuals, limited and unlimited companies, LTDs, PLCs, trusts and offshore special purpose vehicles.
2. Lombard Business Loans
Some of the features and benefits of Lombard Business Loans’ commercial bridging finance and loans.
- Commercial and residential bridging finance
- Loans for property investment, refurbishment or releasing cash
- Speedily release funds
- Release funds to enable your business to progress
- Great for time-sensitive opportunities
- Minimum loan term of 1 month
- Maximum loan term 24 months
- Minimum loan value £100,000
- Maximum loan value £20 million
- A flexible loan that can be used for a variety of purposes
Lombard Business Loans is a specialist financial lender that offers bridging loans, commercial and property finance. Their commercial bridging loan is available for both commercial and residential properties for property investment, refurbishment or releasing cash. It is a flexible loan that can be used for a wide range of purposes such as auction purchases, planning permission, development finance, clearing debts and raising funds.
Lombard Business Loans’ commercial bridging loan will help businesses to release cash quickly and enable businesses to develop their plans especially if they are time sensitive. They offer loans from £100,000 to £20 million over a period of 1 month to 2 years.
Lombard Business Loans website
3. Nucleus
Some of the features and benefits of Nucleus’s commercial bridging finance and loans.
- Short-term finance product
- Suitable for commercial and residential properties
- Loans for up to 2 years
- Borrow from £25,000 to £20 million
- Helps to bridge a gap in funding
- Repayment and interest paid at the end of the term
- Quicker than alternative funding
- Available to businesses in England and Wales
- Eligible to business start-ups
- Offers new lower pricing
Nucleus is a specialist financial provider offering a wide range of financial loans including commercial bridging loans. Their commercial bridging loan is designed as a secure, short-term business loan that is raised from commercial and residential properties. They only offer short-term loans as bridging loans are only designed as gap loans for short-term need and whilst other funding is put in place.
Nucleus offers commercial bridging loans that are for up to 2 years for values between £25,000 to £20 million. As with most bridging loans, the repayment and interest are only payable at the end of the term. Funding can be released quickly compared to other alternative funding.
4. Funding 365
Some of the features and benefits of Funding 365’s commercial bridging finance and loans.
- First charge only basis
- Available for properties in England and Wales
- Minimum loan of £100,000
- Maximum loan of £10 million
- Term length from 3 months to 18 months
- Arrangement and valuation fees apply
- No early repayment fees and interest rebate available
- No exit fees
- Adverse credit history accepted
- Available to UK limited companies
Funding 365 is a specialist commercial bridging finance provider who offers bridging loans to limited businesses in the UK for properties in England and Wales. Their commercial bridging loan is available as a first charge only product and additional fees for arrangement and valuations will apply.
Funding 365’s commercial bridging loan is available for loans from £100,000 to £10 million for periods of 3 months to 18 months. Their bridging loan offers no exit fees or early repayment fees and can be eligible for interest rebate. The loan can be used for purchasing commercial properties, refinancing, releasing working capital and light refurbishment.
5. Octopus Property
Some of the features and benefits of Octopus Property’s commercial bridging finance and loans.
- Available for acquisitions, refinancing and equity release
- Flexible commercial loan
- Structured around your needs
- Can be used for commercial assets
- Minimum loan term of 1 month
- Maximum loan term 24 months
- Loan value of 70% of the property value
- Arrangement and procuration fees apply
- No early repayment charges
- Loans can be completed in a week
- They favour vacant assets and turnaround scenarios
Octopus Property is a specialist finance provider who caters for the property market and developers. They offer commercial bridging loans that are suitable for acquisitions, refinancing and equity release. They say that they particularly favour scenarios that involve vacant assets that are being turned around quickly.
Octopus Property’s commercial bridging loans are flexible and can be structured around your needs. They offer loan terms from 1 to 24 months with loan values up to 70% of the property value. Their commercial bridging loans can only be used for commercial assets. Loans can be completed quickly and will incur arrangement and procuration fees, but no early repayment charges will be charged.
6. Together
Some of the features and benefits of Together’s commercial bridging finance and loans.
- Fast, flexible short-term loan
- Designed for property investors, landlords and SMEs
- Can be used to buy, expand or refurbish the property
- Available for commercial and residential properties
- Loans from £26,000 to £5 million
- Maximum loan value of 75% of the property value
- Available as a first or second loan basis
- Raise funds or boost short-term cash flow
- No-nonsense approach
- Caters for a wide range of customer circumstances
Together is a specialist loan company that offers businesses commercial bridging loans that are designed for property investors, landlords and SMEs to buy property or land, expand premises or refurbish an existing property. Their commercial bridging loans are available for commercial and residential properties.
Together’s commercial bridging loans have flexible terms with a no-nonsense approach to lending. They offer loans from £26,000 to £5 million with a cap of 75% of the property value. They provide products that are available as first or second charge and they can offer cross charging. Some products offer no exit fee options.
7. Masthaven Bank
Some of the features and benefits of Masthaven Bank’s commercial bridging finance and loans.
- Offers commercial bridging loans and several other types of bridging loans suitable for property investors
- Suitable for commercial and semi-commercial properties
- Designed for the purchase or re-mortgage of a property
- Minimum loan value of £100,000
- Maximum loan value of £1 million
- Offers maximum loan property value of 60%
- Terms up to 18 months
- First charge basis
- Short-term loan only
- Second charge basis for investment properties
Masthaven is a specialist lender that offers a variety of finance products for businesses that include commercial bridging loans. They provide five types of bridging loans, four of these being only available for residential or investment properties that are on a first or second charge basis. They also offer a commercial bridging loan that is on a first charge basis.
Masthaven’s commercial bridging loan is available for commercial or semi-commercial properties for the purpose of purchasing or re-mortgaging an existing property on a short-term basis of up to 18 months. They offer loans from £100,000 to £1,000,000 and they will consider those with adverse credit.
8. Lendivest
Some of the features and benefits of Lendinvest’s commercial bridging finance and loans.
- Available for investment properties only
- Suitable for residential, semi-commercial, commercial and land
- Short-term loan to release cash flow or fund works
- Terms of up to 18 months
- Loans from £75,000 to £15 million
- Maximum loan value of 75% of the property value
- First charge basis only
- Can be used on freehold or leasehold properties with over 60 years left
- Fast and flexible property finance
- Has an online loan calculator
Lendinvest is a specialist lender who provides finance to property professionals that require finance to fund their next venture. They only lend to property investors on properties that are residential, semi-commercial, commercial or land. They restrict the property you can lend against to a freehold or a leasehold property with a minimum 60 years left on the lease.
Lendinvest’s commercial bridging loan is designed as a short-term loan to release capital or fund purchases. They provide loans from £75,000 to £15 million with a maximum loan of up to 75% of the property value. Their loans are on a first charge only for any period up to 18 months.
9. Greenfield Capital
Some of the features and benefits of Greenfield Capital’s commercial bridging finance and loans.
- Offers residential, commercial and semi-commercial property
- Terms up to 12 months
- Maximum loan value of 70% of the property value
- Can offer a loan value up to 100% if other security is given
- Loans from £26,000 to £5 million
- Funds can be released in 7 days
- Will consider all case on their own merits
- Available in England and Wales
- Useful for auction properties
- Has dedicated account managers
Greenfield Capital is a specialist financial services provider who offers businesses bridging loans and auction finance that is available for purchasing residential, commercial or semi-commercial properties. They will consider all applications for loans on their individual merit and make a decision based on their findings.
Greenfield Capital’s bridging loans are generally available for up to 70% of the property value however they will consider offering up to 100% of the property value if alternative security can be provided. Loans start at £26,000 up to £5 million for loan terms up to 12 months. They offer loans for properties in England and Wales.
10. United Trust Bank
Some of the features and benefits of United Trust Bank’s commercial bridging finance and loans.
- First and second charge basis available
- Available for residential and mixed-use properties
- For an individual, corporate and trust borrowers
- Can be used for purchasing property, raising capital, refinance and restructuring
- Loans from £75,000
- Maximum loan of £15 million
- Loan terms up to 12 months
- Maximum loan value of 70% of the property value
- Available for properties in England and Wales
- Valuation and legal costs apply
United Trust Bank is a specialist lender that offers a range of secured funding products which includes commercial bridging loans. Their commercial bridging loans are available to individuals, corporate and trust borrowers for residential and mixed-use properties. The loan can be used to purchase property, raising capital, refinance and restructuring.
United Trust Bank’s commercial bridging loans are available for loans up to 70% of the property value and start at £75,000 up to £15 million. Loans are available for up to 12 months on properties that are in England and Wales on a first and second charge basis.
11. Oblix Capital
Some of the features and benefits of Oblix Capital’s commercial bridging finance and loans.
- Suitable for residential, refurbishment, commercial and semi-commercial
- Also available for permitted development and development exiting
- Funding up to 75% of the property value
- Loans from £50,000
- Maximum loans of £7.5 million
- Also offer second charge bridging loans
- Terms from 3 months up to 12 months
- Available for properties in England, Wales and Scotland
- Offered to individuals, partnerships and limited companies
- Will consider opportunities outside their guidelines
Oblix Capital is a specialist financial services provider that offers commercial bridging finance and development finance to individuals, partnerships and limited companies. Their commercial bridging finance is available for residential, refurbishment, commercial and semi-commercial properties and can be used for permitted development and development exiting.
Oblix Capital’s commercial bridging finance offers loans up to 75% of the property value with loans starting at £50,000 up to £7.5 million. They offer loan terms starting at 3 months up to 12 months for properties in England, Wales and Scotland. They will also consider opportunities that sit outside their guidelines.
12. Hope Capital
Some of the features and benefits of Hope Capital’s commercial bridging finance and loans.
- Suitable for residential, retail, commercial and industrial properties
- Available for purchasing properties, refinance and debt relief
- Flexible loans with a fast turnaround
- Offers traditional bridging loan product
- Also offers bridging loans for refurbishment and marketing
- Also offer a fixed fee loan
- Loan value up to 70% of the property value
- Maximum loan up to £5 million
- Will consider loans up to 100% of the property value
- Available for properties in England, Wales and Scotland
Hope Capital is a specialist loan provider that lends to property development businesses to give them the finance required to buy, develop and refurbish properties. They offer a range of bridging loans that include traditional bridging finance as well as refurbishment, marketing and fixed fee bridging loans.
Hope Capital’s commercial bridging loans are a flexible loan that can be turned around quickly. They offer loans up to £5 million with a maximum loan value typically of 70% but they will consider loans up to 100% of the value of the property. It can be used for residential, retail, commercial and industrial properties in England, Wales and Scotland.
13. Hunter Finance
Some of the features and benefits of Hunter Finance’s commercial bridging finance and loans.
- Short-term loan for commercial purposes
- Available for property and land purchases
- Can be used for development costs
- Offered to individual developers, limited/unlimited businesses and LTDs/PLCs
- Loans from 4 months to 12 months
- Fast access to money
- Decision made in 24 hours
- Transparent fees
- Operates across the south of England
Hunter Finance is a specialist commercial finance provider that has been providing lending solutions to commercial developers in London, Kent and South East of England since 2010. They provide a range of development finance which includes commercial bridging loans.
Hunter Finance’s commercial bridging loans are short-term loans that can be used for commercial purposes to purchase property and land but also for releasing funding to develop properties. Their loans are available for 4 months up to 12 months and offer access to funding quickly. They offer loans will transparent fees and will give you a decision in 24 hours.
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