Unlock New Opportunities with Commercial Bridging Loans!

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Unlock New Opportunities with Commercial Bridging Loans!

Are you an aspiring property investor or SME business owner looking to purchase a business or property that’s closed or just starting out? A commercial bridging loan could be the solution you need to seize your next big opportunity. These short-term loans are ideal for purchasing and operating businesses while you work toward refinancing into a commercial mortgage for a thriving going concern.

Why Use a Commercial Bridging Loan?

  • Loan Amounts: Borrow up to £25,000,000, tailored to your venture’s scale.
  • Flexible Terms: Loan durations from 3 to 24 months, giving you time to stabilize operations.
  • Diverse Property Types: Suitable for purchasing offices, warehouses, mixed-use properties, retail spaces, hospitality venues, and care provision facilities.
  • Operate and Build Value: Use the funds to purchase the business, operate it successfully, and demonstrate profitability to secure long-term commercial mortgage refinancing.
  • Available to a Wide Range of Borrowers: Loans available to both UK and non-UK borrowers, including private individuals, limited companies, partnerships, and offshore SPVs.

How It Works

  1. Purchase the Property or Business: Secure the funding you need to buy a property or business that is either closed, newly established, or in the early stages of operation.
  2. Operate for Success: Use the loan period to run the business, establish cashflow, and prove its viability.
  3. Refinance into a Commercial Mortgage: Once the business is stable, refinance into a long-term commercial mortgage at better rates for a going concern.

Common Scenarios for Using Commercial Bridging Loans

  • Revitalizing Closed Businesses: Acquire and revive offices, retail spaces, or hospitality venues that have temporarily shut down.
  • Launching New Ventures: Secure funding for properties that need initial operations to establish value.
  • Mixed-Use Properties: Invest in properties with diverse income streams, such as residential and commercial tenants.
  • Care Provision Facilities: Purchase and operate care homes or other facilities to meet growing demand in the sector.
  • Retail Revivals: Reopen shuttered storefronts in high-potential locations and rebuild them into thriving enterprises.
  • New Hospitality Startups: Fund boutique hotels, restaurants, or cafes to capitalize on evolving consumer trends.

Real-Life Examples

Example 1: Hospitality Sector Revamp

A property investor purchased a closed hotel for £2,000,000 using a bridging loan. Over the next 18 months, they refurbished the property, built a steady stream of bookings, and refinanced to a commercial mortgage with a significantly higher valuation of £3,500,000.

Example 2: Warehouse Acquisition

An SME used a £750,000 bridging loan to acquire a vacant warehouse. The business began operations, established contracts with suppliers, and refinanced within 12 months to a commercial mortgage for ongoing operations.

Example 3: Retail Space Transformation

A small business owner secured a £400,000 bridging loan to purchase a closed retail shop in a busy urban area. After 9 months of renovation and restocking, the store reopened and quickly became profitable, enabling refinancing to a long-term loan.

Benefits of Commercial Bridging Loans

  • Fast Access to Funds: Completion in as little as 7-28 days ensures you won’t miss out on a time-sensitive opportunity.
  • Tailored for Business Growth: Whether you’re investing in the hospitality sector, opening a retail space, or purchasing a care facility, the flexibility of these loans supports your unique business goals.
  • Short-Term, High-Impact: A bridging loan acts as a stepping stone, providing the resources to get your business up and running before transitioning to stable, long-term financing.
  • Customizable Terms: With flexible loan amounts and terms, you can secure exactly what you need without overextending.
  • Finance in Challenging Situations: Loans are available even when property or borrower-related challenges exist, such as:
    • Vacant properties
    • Properties with tenants on short leases
    • Properties with low weighted average unexpired lease terms (WAULT)
    • Start-ups with no trading history
    • Lending based on business projections

FAQ: Bridging Loans for Businesses

Q: Can I use a bridging loan if the business is not yet profitable?
A: Yes. Bridging loans are designed to help you stabilize operations and build profitability, making them ideal for businesses in their early stages.

Q: What happens if I can’t refinance within 24 months?
A: Many lenders offer extensions or alternative solutions. It’s crucial to have a clear exit strategy to avoid complications.

Q: Are these loans available for properties without planning permission?
A: While bridging loans often focus on properties with existing uses, lenders may still consider land or properties without planning permission on a case-by-case basis.

Q: What types of collateral are accepted?
A: Typically, commercial bridging loans are secured against the property being purchased, though additional assets may be considered depending on the lender.

Steps to Get Started

  1. Evaluate Your Needs: Determine the property or business you want to purchase and your funding requirements.
  2. Prepare Your Application: Gather essential documents, including proof of assets and your intended exit strategy.
  3. Speak to an Expert: Consult with a bridging loan specialist to explore tailored options and secure the best terms.
  4. Implement a Business Plan: Clearly outline how the loan will be used to add value to the property or business, which will support future refinancing.

Take the First Step Today

Don’t let a closed or unproven business hold you back from your goals. Speak with an expert today to explore how a commercial bridging loan can help you turn potential into profit.

For more information contact us for a fees free chat.

john@sunrisecommercial.co.uk

https://www.sunrisecommercial.co.uk/

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