Rapid Bridging Loan to Fund Business Launch

Bridging loans can provide flexible funding solutions beyond property purchases, including business investments with tight timelines.

As long as a bridging loan is secured against property and you have a verifiable exit strategy, lenders can be surprisingly flexible with the use of capital raised.

The Scenario

Our client approached us with an urgent need to raise capital against one of their buy-to-let (BTL) properties. The purpose was to invest in their son's business before its impending launch date, before repaying the loan once the BTL had sold.

The property in question was a 4-bedroom detached house in Norwich, valued at £330,000, and they were looking for finance to come through as soon as possible with the business planned to launch within the month.

The Solution

Understanding the urgency and the client's need to minimise costs, we moved swiftly to secure a first-charge, unregulated bridging loan with the following terms:

• £125,000 capital raised
• 0.63% interest rate per month (lowest available on the market at the time)

To expedite the process and keep costs low, we implemented two key strategies:

1. We arranged for an online valuation, significantly speeding up the application process.

2. We engaged a lender that allows joint representation (both the client and lender use the same solicitor, streamlining the legal processes and reducing costs).

We approached a lender with whom we have a history of quick transactions and who offers competitive interest rates.

This rapid turnaround was achieved while still securing the lowest rate on the market, and despite the use of funds being unorthodox (to fund a new business venture).

It showcases the versatility of bridging loans beyond typical property transactions.