Compare Business Bridging Loans

  • If you need to make a business purchase immediately but currently lack funds a bridging loan could be an ideal option
  • Our comparison table below lists a panel of UK specialists that provide business bridging loans
  • Compare available loan amount and terms and apply direct today.
4 products found
  • Alius Finance Property Portfolio Builder logo
    Broker

    Alius Finance Property Portfolio Builder

    • An innovative flexible finance solution designed for the property professional (available to UK limited companies only)
    • Pre-approved loan amount (Up to 80% LTV, 1st & 2nd charge), funds are ready when you are
    • One time set-up, no ongoing deal by deal valuations or legal fees required for traditional finance
    • Minimum Turnover
      Must be profit-making
    • Available Amounts
      £50,000 to £1,000,000
    • Available Terms
      12 months (renewable)
  • EJ Finance Bridging Loans logo
    Broker

    EJ Finance Bridging Loans

    • Up to 80% LTV (Loan To Value)
    • 5-day turnaround
    • Rates start at 0.4% above base
    • Minimum Turnover
      £50,000 p.a.
    • Available Amounts
      £50,000 to £10,000,000
    • Available Terms
      1 month to 2 years
  • Swoop Funding Bridging Loans logo
    Broker

    Swoop Funding Bridging Loans

    • Non-regulated property-backed short-term business loans
    • If you have Commercial or Residential Property this option could work for you
    • Wide range of funding amounts and terms available
    • Minimum Turnover
      £60,000 p.a.
    • Available Amounts
      £5,000 to £2,500,000
    • Available Terms
      1 to 18 months
  • THINK Business Loans Bridging Loans logo
    Broker

    THINK Business Loans Bridging Loans

    • Compare over 50 bridging loan lenders with THINK's iFunds matching platform
    • Rates from 0.39% APR
    • Up to 100% LTV available
    • Minimum Turnover
      Must be profit-making
    • Available Amounts
      £50,000 to £10,000,000
    • Available Terms
      1 to 5 years
  • Suppliers that don't offer Business Bridging Loans but may offer suitable alternatives:

    • Funding Circle logo
      Peer To Peer

      Funding Circle

      • Your business must have a minimum of 2 years’ trading history
      • A leading UK platform for Small Business Loans
      • Simple online application and decisions in as little as 1 hour
      • Rates from 4.3% to 12.1% per year - No early settlement fees
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £500,000
      • Available Terms
        2 to 6 years
    • Fluidly logo
      Broker

      Fluidly

      • YOUR BUSINESS MUST BE TRADING FOR 12 MONTHS OR MORE
      • Hassle free funding options within 30 seconds
      • Team of Funding Specialists are on hand to support your application
      • A range of products available including Recovery Loan Schemes, unsecured and asset financing
      • Minimum Turnover
        £50,000 p.a.
      • Available Amounts
        £15,000 to £10,000,000
      • Available Terms
        3 months to 7 years
    • iwoca logo

      iwoca

      • Flexible Credit Facilities of £1,000 to £200,000 for Limited Companies
      • No fees or long term commitments
      • Apply online in minutes for a decision (some decisions may take up to 24 hours)
      • Minimum Turnover
        £50,000 p.a.
      • Available Amounts
        £1,000 to £200,000
      • Available Terms
        up to 12 months
    • Fleximize logo

      Fleximize

      • Voted "Best Business Finance Provider" at the British Bank Awards 2020
      • Industry-leading flexibility - top-ups, repayment holidays, no hidden fees
      • Interest charged on a reducing balance, repay early and only pay for the time you had the loan
      • Rates from 0.9% per month (10.8% per annum), with no additional fees
      • Minimum Turnover
        £60,000 p.a.
      • Available Amounts
        £5,000 to £500,000
      • Available Terms
        3 months to 4 years
    • Funding Xchange logo
      Broker

      Funding Xchange

      • Access 70 lenders from one simple funding request
      • Easily compare the choices available, including RLS options
      • Apply with confidence, no impact on your credit score
      • Minimum Turnover
        £100,000 p.a.
      • Available Amounts
        £1,000 to £500,000
      • Available Terms
        3 months to 5 years
    • NatWest Rapid Cash - Invoice Finance logo

      NatWest Rapid Cash - Invoice Finance

      • Eligibility Criteria Apply
      • Rapid Cash is an innovative, high tech solution to business financing
      • Borrow against your unpaid invoices and get a flexible line of credit from £25,000 to £1 Million
      • You could be approved within 48 hours. Security and guarantee required. Fees may apply
      • Minimum Turnover
        £100,000 p.a.
      • Available Amounts
        £25,000 to £1,000,000
      • Available Terms
        No min/max terms
    • Portman Asset Finance logo
      Broker

      Portman Asset Finance

      • Business finance broker with specialist sector experience, offering fast and flexible finance solutions
      • Access over 40 leading UK lenders
      • Over £750 million in funding provided to thousands of small-to-medium sized UK businesses
      • Minimum Turnover
        No minimum
      • Available Amounts
        £10,000 to £10,000,000
      • Available Terms
        Up to 5 years
    • Nucleus logo

      Nucleus

      • Fast service - receive your funding in 24 hours
      • Unsecured and secured business loans
      • 7 products tailored to your business
      • Minimum Turnover
        £60,000 p.a.
      • Available Amounts
        £3,000 to £50,000,000
      • Available Terms
        3 months to 8 years

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. You can use the options above the table to order it according to various criteria.

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Last updated on 16 November 2020.

Business Bridging Loans FAQ

Bridging loans are a short-term form of funding that can be used to "bridge" a gap between finance becoming available, and a purchase that is required immediately. If you need information on these products such as how they work and who they are suited for, you can find helpful answers to the most frequently asked questions about business bridging loans below.

What are bridging loans?

Bridging loans are a short-term form of funding that can be used to "bridge" a gap between finance becoming available, and a purchase that is required immediately. Commonly, bridging loans are repaid within a maximum of 12 months, and are often used by developers and property investors who want to take advantage of time-sensitive market conditions and investment opportunities.

Who are bridging loans for?

Bridging loans are primarily designed for property developers and landlords, including those who want to make purchases at auction when prices are low and funds are needed instantly. As well as assisting individuals who want to purchase property when there is a gap between the completion and sale dates involved in a chain, a bridging loan can be beneficial for someone who wants to purchase property at auction.

How do bridging loans work?

Bridging loans, or bridging finance, can help with covering the financing for property investment and housing development. There are two forms of bridging loans available, known as "open" and "closed" bridging loans.

With an open bridging loan, you will have more flexibility as there is no fixed repayment date, but you will often be expected to pay the money you owe within a year. This type of loan can be useful if you're not sure when a sale on your old property will be completed.

In the case of a closed bridging loan, you will receive a fixed date by which you need to repay the loan. This is often the best solution for someone who is simply waiting for an agreed property sale to be completed and needs the money ahead of time.

When is the best time to use a bridging loan?

Bridging loans can be used for a variety of purposes, including buy-to-let, development programs, and standard commercial or residential property investment. More recently, borrowers have begun to use bridging loans to bypass banks that take a long time to process applications for large loans. They're also a popular option for people buying property at auction.

How much can I borrow?

The amount that you can borrow through a bridging loan will depend on the security available in the property. All bridging loans must be secured on residential or commercial property, and higher LTVs (Loan to Value ratios), are often available on residential properties, because commercial investments are riskier for lenders.

Are there alternatives available?

If you're eager to move into a new property but you can't sell your previous home or commercial property, then you may consider a Let to Buy agreement. This will give you some breathing space and allow you to sell the other property when you are ready. However, it's not so simple when the property in question is a commercial property.

Some buyers will find that a commercial mortgage will work as an alternative to a bridging loan, but generally this will only work on less time-sensitive deals.

What will I need to apply for a bridging loan?

To apply for a bridging loan, you will need evidence of the value of the property that you plan to buy with the loan and the price you are going to pay for it. You may also need to provide additional information, including:

  • A clear repayment plan
  • Proof of your intent to sell your property
  • A backup plan in case your sale falls through

What are the interest rates of bridging loans like?

Given the specialist nature of bridging loans, the interest rates you pay may be higher than with traditional term loans. Sometimes, you may roll the interest payments, which means that you pay the complete sum at the close of the agreed term, rather than making monthly payments.

The additional costs involved in a bridging loan will depend on the circumstances of your loan. Most of the time, there will be a fee for arranging the loan and administration fees, as with most financial products. The amount you pay is likely to vary from one lender to the next, so it is worth comparing the available options.

Are there any risks with bridging loans?

Bridging loans can be expensive, and the biggest risk is generally that you will miss the repayment deadline. Bridging loans are given on the assumption that you can repay the debt you take on by selling another property to release the funds. If that sale falls through, you will need to have an established backup plan that will help you to make repayments or you will be hit with some significant fees.

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