Using bridging finance for commercial investment

Bridging finance is an increasingly popular source of capital for property investors and homeowners to fund a period of transition, such as a property refurbishment or to cover the time until a sale completes. But it’s also being used more frequently in the commercial world for commercial investment purposes.

Just as a bridging loan can be secured on a residential asset, at Alternative Bridging Corporation, we can provide loans that are secured by a first or second charge on commercial and semi-commercial properties. Our commercial bridging loans are available for purchase, refinance and property improvement or for unlocking working capital, and loans can be secured against office buildings, retail units, industrial premises, hotels, residential investments and residential land that has planning permission.

Perhaps more interestingly, however, particularly in the current environment, the proceeds of a bridging loan can be used to finance commercial investment or to solve a short-term business cash flow problem.

Whether a borrower wants finance to fund a new start-up venture, or for investment purposes to improve the growth of the company, there are options to access capital quickly in the specialist finance sector.

One product we find particularly popular in helping businesses to finance their objectives is the Alternative Overdraft. It offers a flexible drawdown facility that provides liquidity whenever a borrower needs it. The facility can be drawn upon and repaid time and time again, providing the equivalent of an overdraft, and this removes the need for expensive setting-up charges each time a loan is needed.

Commercial bridging covers a wide variety of purposes and property types. As we progress through this period of high inflation and challenging economic circumstances, the outlook begins to look more promising for businesses. Appetite to invest will grow and commercial bridging can help to finance those plans.