SME Commercial Bridging Loans
Fast, flexible loans to bridge the gap
- Loans from £25,000 – £60 million
- Commercial, mixed-use property or land
- Get a decision in principle today
Quick Decision with No Obligation
Fast, flexible loans to bridge the gap
Quick Decision with No Obligation
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR COMMERCIAL PROPERTY OR HOME. YOUR COMMERCIAL PROPERTY OR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
A commercial bridging loan provides short-term funding for businesses or investors who need quick access to capital to help secure commercial property or land purchases. This type of loan is typically used to “bridge” the financial gap until more permanent financing is secured on the property or a property sale completes.
Instantly compare over 50 commercial bridging loan lenders, including rates, fees and maximum LTVs.
Access short-term bridging loans ranging from £25,000 up to £60 million for your commercial needs.
Bridging loans are typically available over short terms ranging from 1 to 24 months.
The streamlined application process allows you to receive a Decision in Principle (DIP) the same day, sometimes within minutes.
Bridging loans can be arranged quickly, typically within 14 days, making them a great option for urgent financial needs.
Use it for a range of purposes, such as auction purchases, property refurbishment, and acquiring land or commercial and semi-commercial (mixed-use) properties.
Quick Decision with No Obligation
The process of applying for commercial bridging finance is simple, with an online application and same-day decision in principle. After a property valuation and approval, funds are disbursed within days, providing fast access to capital.
Here's how commercial bridging finance typically works in four steps:
The borrower applies for the loan, specifying the purpose, such as buying property or covering a short-term expense.
The lender assesses the property’s value as security and evaluates the borrower’s financial profile. If both meet the criteria, the loan terms—interest rates, fees, and repayment timeframe—are finalised, usually within days.
Once approved, funds are disbursed quickly (often within days or weeks), giving the borrower fast access to capital for their immediate needs.
The loan is repaid when the borrower secures long-term financing or completes the property sale, typically within 1-24 months.
Compare over 50 lenders and get a decision in principle today
Apply NowQuick Decision with No Obligation
Commercial bridging loans can be secured against various types of properties, including offices, retail units, warehouses, and even land without planning permission. Their flexibility makes them ideal for a wide range of property transactions, providing quick funding for your immediate business needs.
Here are just a few examples of commercial property types accepted:
View more examples of properties that could be secured on a commercial bridging loan.
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At SME Bridging Finance, we specialise in offering fast, flexible, and reliable short-term commercial bridging loan solutions tailored to meet your unique financial needs.
Whether you're investing in commercial, semi-commercial properties, or land, undertaking essential renovations to increase value, or addressing temporary cash flow gaps, we are here to provide the capital you require with speed and efficiency.
Quick Decision with No Obligation
We’ve helped support many businesses across the UK by providing quick and easy access to tailored commercial bridging loans.
£831 million
of bridging loans was financed in 2023*
12 months
Average term of finance*
0.87%
Average monthly interest rate*
*According to Bridging Trends statistics for the UK bridging finance market in 2023.
Compare commercial bridging loans from lenders in just minutes and apply online with ease. Save valuable time and money while securing the right loan solution tailored to your business needs.
Complete our quick online form with your funding details, and we’ll instantly match you with lenders to compare rates, fees, and LTVs.
Secure a same-day decision in principle (DIP) and move one step closer to your funding.
Apply online and once approved, funds are usually available within days, enabling you to proceed with confidence.
Quick Decision with No Obligation
Here are some frequently asked questions (FAQs) about commercial bridging loans:
We offer small and large bridging loans from £25,000 up to £60 million. However, the amount you can borrow typically depends on the value of the commercial property, its condition, location and desirability, your creditworthiness, and the lender's criteria.
Generally, lenders offer up to a maximium of 75% (LTV) of the property’s value as the loan amount.
For example, if the property is valued at £1 million and the lender offers a 75% Loan-to-Value (LTV) ratio, you would be eligible for a loan of £750,000. This arrangement allows the borrower to access three-quarters of the property's value in financing.
Repayment typically occurs either through the sale of the property or refinancing with a longer-term loan. The exit strategy should be clearly defined before taking out the loan.
The Loan-to-Value ratio (LTV) in a bridging loan is the percentage of a property's value that a lender is willing to finance.
For example, if the LTV is 75%, the lender will provide a loan covering 75% of the property's value, and you’ll need to cover the remaining 25% either through cash or equity. A higher LTV means you can borrow more against the property, but it also means the lender has a larger share tied to the loan.
Criteria may vary from lender to lender; however, borrowers typically need to meet the following basic requirements:
Bridging loans are usually processed much faster than traditional loans. Depending on the lender and the complexity of the application, approval and funding can be completed within days to a few weeks.
Commercial bridging loan costs can vary based on the lender and the specific loan terms. Due to their short-term nature and fast accessibility, bridging loans tend to be more expensive than traditional financing options. However, they can be arranged quickly, offering a significantly faster alternative to the lengthy process of obtaining other types of funding.
Typical fees include:
Interest rates are typically between 0.5% to 2% per month. Rates are usually higher than standard loans, often charged monthly rather than annually.
A setup fee, generally 1-2% of the loan amount, is charged by the lender to process the loan.
Covers the cost of a property valuation required by the lender.
Both the borrower and lender’s legal fees may be covered by the borrower.
Sometimes charged when the loan is repaid, often around 1% of the loan.
Additional fees for loan management or specific processing steps that may apply.
Want to see how much your loan could cost? Use our free commercial bridging loan calculator for an instant estimate.
Yes, you can get a commercial bridging loan with bad credit, although it may make securing the loan more challenging. However, having a strong credit score can enhance your application and increase your chances of getting better loan terms.
Residential and commercial bridging loans differ mainly in property type and purpose.
Used for properties intended for residential use, such as houses, apartments, or other dwellings. These loans are typically used by homeowners or property investors purchasing or renovating a residential property.
Used for commercial properties, such as office buildings, retail spaces, warehouses, and other business-use properties. These loans are typically taken out by businesses, developers, or investors for business or investment purposes.
Bridging loans used for investment properties, buy-to-lets, or commercial properties are not currently regulated by the Financial Conduct Authority (FCA). As a result, all commercial bridging loans are considered unregulated.
Open and closed bridging loans differ mainly in their repayment terms and exit strategies.
Open bridging finance has no fixed repayment date ,and the borrower has no defined exit strategy in place. These are generally more expensive than closed bridge loans.
Closed bridging finance has a fixed repayment date, and the borrower has a defined exit strategy in place. These are generally cheaper than open bridge loans.
At SME Bridging Finance, you can apply for a commercial bridging loan by completing a quick online form. We offer same-day decisions in principle, and you’ll gain access to a comparison of over 50 lenders to find the best terms for your needs.
