GUIDE TO BRIDGING FINANCE
with their uses becoming
more innovative and spanning many markets. It is available across all sec-
tors, can be based on first or second charges and can be as cost-effective as a funding vehicle.
It’s this diversity that makes bridging a truly innovative solution for a broad range of clients.
Completion is possible in as little as a few hours if all the documentation is in place, and making a quick decision in a short space of time could mean the difference between securing a good business opportunity or losing one.
Increasing flexibility Since the early days, the origi- nal personal purpose of bridg- ing has adapted over the years into a product that can be used for many different circumstances across all sec- tors, including both commercial and residential. It is now being used more and more
for commercial and professional uses such as:
Investing in business opportunities Buying property at auction Seizing investment opportunities Easing cash flow concerns Clearing unexpected bills
At Blemain Group, there is an increas-
ing trend to use bridging finance for business acquisition, either to expand a current business or change its use – for example, turn a disused property into a convenience store.
Specialist lenders play a key role In today’s market, more people are turn- ing to specialists as high street lenders reject applicants who would previously have been accepted. But secured commercial lending with the right product provides viable and
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flexible finance when more traditional funding is not available, or circum- stances do not allow it. Small and medium-sized enterprises need good lenders now more than ever – especially amid fears of a double-dip recession. Those that are struggling often need a cash injection in their business quickly to maintain the necessary levels of cash flow. With most businesses having their
first charge funding with a traditional high street bank, remortgaging is un - likely in the current climate. If it is avail- able, they are unable to better or main tain interest rates. Even so, the process is often lengthy
which is not conducive to seizing busi- ness opportunities. Products such as second charge com-
mercial bridging can be the most practi- cal solution in cases such as this. Property is a key asset to most busi-
nesses, whether a landlord with an extensive property portfolio or a busi-
guide to Bridging Finance 2012
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