Our short term bridging loans are for purchase, refinance, property improvement or to unlock working capital for business purposes.
This unique overdraft provides you with a flexible drawdown facility giving you instant liquidity and avoids heavy setting-up costs.
Individually structured loans for residential and commercial projects, with finance available for site purchase, construction and fees, refinance, equity release and to provide working capital. Loans are available up to 90% of the site cost.
Flexible first and second charge non-regulated loans available on terms from 3 to 5 years.
We have a commitment to innovation and with the ever changing financial landscape around us we have designed a range of unique Specialist Lending products that solve a range of property finance needs.
By Jonathan Rubins, Director & Chief Commercial Officer at Alternative Bridging Corporation
Commercial Bridging Finance involves a range of Commercial Loans and services designed to assist investors and businesses in acquiring, developing, and managing commercial property. These types of properties often include office buildings, retail units and industrial facilities.
Commercial Property Finance also plays an important role in the broader economy, enabling the development of infrastructure and the expansion of businesses. It involves various stakeholders, including banks, private lenders, investors, and developers, each bringing their expertise to the table to structure deals that are mutually beneficial.
Commercial Property Finance can be categorised into several types, each with unique features designed for different investment needs and risk profiles. These include traditional Commercial Mortgages, Commercial Bridging Loans, Development Finance, and Mezzanine Finance.
These are long-term loans secured by commercial property, typically used for purchasing established properties with steady income streams. They feature fixed or variable interest rates and are repaid over a period typically ranging from 5 to 25 years. Traditional Commercial Mortgages are suitable for investors seeking stable, long-term investments. However, mortgages are not as flexible as other loans such as Bridging Finance, they also take significantly longer to acquire.
An alternative to a mortgage is a Commercial Bridging Loan. These loans are designed to bridge the gap between immediate financing needs and the availability of long-term funding. Bridging Loans are typically used to quickly secure a property while the investor arranges for more permanent financing.
We offer a specialist Commercial Bridging Loan service for purchasing, refinancing and improving commercial property. These loans can also be used for unlocking working capital for commercial purposes, such as property auctions. They are designed to be a much shorter-term arrangement (ours are available for 3-24 months) which gives you quick access to capital and enables you to buy or renovate property.
This type of finance is geared towards funding the construction or significant refurbishment of commercial properties. It is usually provided in stages, with funds released at various phases of the project, contingent upon the completion of pre-agreed milestones.
Positioned between senior debt and equity, mezzanine finance provides additional capital to projects where traditional lenders are unwilling to cover the entire cost. It often involves a hybrid of debt and equity financing, giving lenders the right to convert the loan into an ownership interest if the loan is not repaid on time. Mezzanine Finance is particularly useful in situations where investors require additional leverage to close deals.
Commercial property investment strategies vary widely, reflecting the diversity of the market and the differing objectives of investors. These strategies can broadly be categorised into core, value-added, and opportunistic investments.
Core investments focus on acquiring high-quality, well-located properties with stable income streams. These properties are typically fully leased to creditworthy tenants and require minimal management. Core investments are low-risk and suitable for investors seeking steady, predictable returns.
This strategy involves acquiring properties that have the potential to increase in value through strategic enhancements such as renovations, re-leasing at higher rents, or improving operational efficiencies. Value-added investments carry moderate risk and require active management to realise their full potential.
Opportunistic investments target properties with significant upside potential, often involving substantial redevelopment, repositioning, or acquiring distressed assets. These investments are high-risk but offer the possibility of substantial returns. Opportunistic investors need a thorough understanding of market dynamics and a willingness to take on complex projects.
Achieving success in commercial property investment requires a clear strategy, thorough due diligence, and effective execution. Here are key considerations your client should take into account for each investment strategy.
To succeed with core investments, focus on properties with strong fundamentals. Evaluate the location, tenant quality, lease terms, and market conditions. Ensure that the property has a history of stable occupancy and income. Mitigate risks by diversifying across different property types and locations.
For value-add investments, success depends on identifying properties with untapped potential. Conduct a comprehensive assessment of the property’s physical condition, market position, and operational performance. Develop a detailed business plan outlining the improvements to be made and their expected impact on the property’s value. Secure reliable contractors and property managers to execute the enhancements efficiently.
In opportunistic investments, the key to success is a thorough understanding of the market and the ability to act quickly and decisively. Identify properties with significant issues that can be resolved, such as distressed assets or those in underperforming markets with turnaround potential. Perform rigorous financial analysis to ensure the projected returns justify the risks. Assemble a team of experts in development, finance, and property management to overcome the complexities of these high-stakes projects.
Commercial Bridging Finance plays a key role in facilitating successful property investments across various strategies. It provides the flexibility and speed necessary to capitalise on opportunities that require immediate action.
Bridging Finance allows investors to secure auction purchases quickly, without having to wait for long-term financing to be arranged. This is particularly advantageous in competitive markets where properties can be snapped up swiftly.
Investors can use Bridging Loans to fund the refurbishment or development phase of a value-added or opportunistic investment. Once the property is enhanced and its value increased, it can be refinanced with a traditional mortgage or sold for a profit.
Bridging Finance can help investors overcome short-term liquidity issues, such as when a property purchase is contingent on the sale of another asset. The Bridging Loan can cover the purchase cost until the sale proceeds are realised.
Commercial Bridging Finance provides quick, flexible funding solutions, enabling investors to seize opportunities as they arise. By utilising Bridging Finance effectively, property investors can enhance their portfolios, capitalise on market opportunities, and achieve their investment objectives with greater agility.
In a market where timing and financial agility are critical, Bridging Loans offer a valuable tool for brokers and their clients. By understanding Commercial Property Finance and the strategic use of Bridging Finance, brokers can guide their clients to successful investments and optimal financial outcomes.
If you have any questions about our Commercial Bridging Loans or any other property finance options, don’t hesitate to get in touch.
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