Bridging Finance: Supporting Growing and Recovering Businesses

The after-effects of the pandemic will continue to be seen on the UK’s business landscape for many years to come. Even so, the ambition and sheer resilience the country’s business community has demonstrated in 2022 to date have been remarkable.

As confidence grows, so too does the UK’s collective interest in business growth and expansion. Consequently, research suggests that almost 90% of specialist finance brokers expect to do more business with British SMEs this year than in 2021.

A Bridging Finance Boom

In particular, SME are setting their sights beyond the usual High Street banks to do business with specialist bridging lenders. Discouraged by the complex and time-consuming nature of conventional loan applications, bridging finance has become the tool of choice for the UK’s more dynamic business borrower.

Quick to arrange and with relaxed eligibility requirements, bridging loans can be used for a wide variety of useful purposes, such as:

•      Purchasing stock or equipment to enable a business to meet growing demand or expand into new markets

•      Raising additional capital in time-critical situations to cover urgent expenses and bridge financial gaps

•      Funding the establishment of a new business and covering initial operational and staffing costs

•      Paying unexpected tax bills that could otherwise pave the way for heavy penalties or potential legal action

Applying for bridging finance is a significantly less burdensome process than taking out a comparable conventional loan. For most SMEs taking their business to bridging lenders, the appeal of bridging finance lies primarily in the following:

Speed

With the help and support of an experienced broker, a bridging loan can be authorised and accessed in a matter of days. Irrespective of the size of the loan, the facility is so much quicker and easier to arrange than a comparable High Street loan. Bridging finance can therefore offer a real lifeline in time-critical situations.

Flexibility

Another benefit of bridging finance is how the funds raised can be used for any legal purpose whatsoever. No restrictions are placed on how the capital is allocated, which is often the case with conventional loans and financial products.

Affordability

A bridging loan is a strictly short-term facility, designed to be repaid within six to 18 months. During which, interest is applied at a rate of around 0.5% per month or lower. This in turn means that when a bridging loan is repaid promptly, it can be a uniquely cost-effective facility with rock-bottom borrowing costs.

Accessibility

Perhaps most importantly, bridging finance is available to anyone with acceptable assets of value to cover the costs of the loan (security), coupled with a viable exit strategy (how and when the loan will be repaid). Even with poor credit or a history of bankruptcy, it is still possible to qualify for a competitive bridging loan.

Specialist bridging finance can be a powerful tool for SMEs, particularly where stopgap solutions are required for temporary capital shortfalls.

Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, UK Property Finance, Serimax and has also supported UK doctors, solicitors and property developers to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.