For the last 2-3 years the main UK banks have pretty much been out of the property development finance market. Mezzanine funders who relied on these banks for business also had to withdraw because without senior debt from banks who could they lend to? Some mezzanine lenders also had finance facilities withdrawn.
A commercial bridging Loan is a short-term loan used as a way to provide funding for the purchase of a new property while the borrower awaits the sale of an existing property. Unless all the stars are in perfect alignment, it’s tricky to coordinate the sale of one property and the purchase of another property in such a way that the transactions occur simultaneously.
Even with adverse credit or no proof of income RSM Financial can work with you to realise your business goals.
If you are looking to finance a Shop, Pub, Restaurant, Bed & Breakfast or just about any other type of commercial property then we can help.
Generally, there’s two types of commercial mortgages offered by banks, financial institutions or finance specialist companies:
‘owner-occupier commercial mortgage’ where you borrow money to buy the business property and/or land as for business operations
‘commercial mortgage’ for investment purposes where you borrow money to buy the property/land to rent out.
When you use a commercial mortgage to buy property, or to raise funds for any other business purpose, the lender retains an interest in that property until the loan has been paid in full. Unlike other types of business loans, which usually have a relatively short repayment period, you can take out a loan for as long as 30 years if you like.
In the uk, most Commercial Lenders will require up 75% of the value of the loan. You will need to come up with as much as possible to secure the loan. The items you put up to secure the loan will be confiscated by the Commercial Lender should your fail to honor the terms of the loan. Let’s look at each of the things that can be used and how they work.
Large bridging finance is available only with suitable security. Loans over 1 million are aimed at experienced property professionals or businesses with sufficient assets available as security. Loans can be used for most purposes, typically for development, company cash injection, expansion, buyouts, mergers and acquisitions.
A bridging loan offers financial assistance that literally covers a cash shortfall. This enables you to move from point A to point B by bridging the financial gap. If you have ever found yourself in a situation where you have an asset but you need new additional financing to fund your next business venture or private requirements, a bridging loan is the perfect product for you.
