What are Business Bridging Loans?
Business bridging loans are available to company directors and business owners who are looking to raise finance quickly for tax and cash-flow purposes.
This type of bridging finance is only available to commercial and residential property owners. Secured against property, a business bridge provides you with the time needed to refinance and expand your business; as well as meet emergency cash-flow requirements.
Who Can Apply for Bridging Finance?
If you are the legal property owner of a commercial or residential property you can apply for business bridging finance.
The property needs to be in the UK and finance is accessible to both UK and Foreign Nationals. Borrowing is available to Individuals; Trading Ltd Companies; Special Purpose Vehicle (SPV); and Offshore Borrowing Vehicles.
Bridging Loan Calculator
Try our bridging loan calculator here. Simply fill out the information and click “Continue”.
There are only three steps involved in the process and it should only take around five minutes to complete!
We’ll do the rest and contact you back with a bridging loan quote as soon as possible.
Small Business Bridging Loans
Small businesses often find themselves in need of a short-term cash injection. When this happens a business bridging loan could give you access to the cash you need. As long as you can demonstrate you have a viable exit strategy a short-term bridging loan can be arranged quickly.
If you are a small business considering taking out a business bridge loan, speak to our experienced team today; we will be able to discuss your requirements and advise you on the best course of action.
How a Short-Term Bridging Loan Can Help
What Type Of Property Is Acceptable?
Most types of property are acceptable for a bridging loan including…
- Commercial Properties
- BTL Residential Properties
- Holiday Lets
- Residential Properties (subject to strict underwriting criteria)
How Limited Companies Use Bridging Loans
There are a number of different scenarios in which a limited company may use business bridging loans. They can be used for a property investment such as an apartment block, office complex or maybe an HMO.
Alternatively, it could be used to upgrade your existing premises or to help with a programme of business expansion. This could include improving or extending retail premises or purchasing new equipment to help make your business more efficient. A short-term bridging loan can provide limited companies with the cash they need quickly and help you take advantage of a business opportunity as soon as it arises.
To get more details about our bridging loans for limited companies contact our team today.
Our range of bridging loan solutions includes…
Bridging Loans for Business Expansion
Bridging loans can be extremely useful if you are looking to expand your business. They can provide the quick access to cash needed to finance growth initiatives, such as:
• Expanding into new markets
• Developing new products or services
• Acquiring new businesses
• Hiring new staff
• Investing in new equipment or inventory
A Bridging loan is secured against the business’s property or directors property be it investment property and in some cases their residential property. In most cases the interest charges will be higher than those of more traditional loan methods. However, bridging loans can be a good option for businesses unable to qualify for traditional loans or that need funding quickly.
| Business Bridging Finance Basic Criteria | |
|---|---|
| Loan To Value | Up to 75% |
| Loans Available | 1st & 2nd Charge |
| Loans Size | £50,000 to £25,000,000 |
| Terms | 1 Month to 36 Months |
| Adverse Credit | Acceptable |
| Rates | From 0.45% |
Bridging Loans for Business Expansion
Make sure you have a pre-determined budget and that you understand how the loan will benefit your expansion project.
There are a number of lenders offering bridging loans, so it is important to compare quotes from different lenders before you apply to ensure you get the best deal.
Bridging loans typically have higher interest rates than traditional loans, so it is important to make sure you will be in a position to repay your bridging loan at the end of the agreed period.
Use a Business Bridging Loan to Pay an Outstanding Tax Bill
It doesn’t matter whether you are an individual or a business owner; an unexpected tax bill can be extremely stressful, especially if you haven’t budgeted for it. If you find yourself faced with a tax bill that you are struggling to pay, a business bridging loan could provide you with the finance you need.
You can apply for a business bridging loan to pay an outstanding tax bill if the assets you wish to secure the loan against are UK based, and you are the legal owner of the property concerned.
Business Bridging Loan Uses
There are a number of different scenarios that may leave you liable to tax which include:
- Income Tax – while income tax is deducted at source if you are employed, anyone who is self-employed is responsible for paying their tax to HMRC.Capital
- Gains Tax – If you sell an asset for more than you paid for it you will be liable for capital gains tax.
- Corporation Tax – This is like income tax but for companies, corporation tax looks at the profitable income of a company and periodically deducts a percentage of the profits.
- VAT – Value added tax is put onto products if value is added during production.
- Inheritance Tax – As soon as you inherit an asset you become liable for inheritance tax. The rate of this is independent on the amount of the inheritance and your relationship with the deceased person.
Why Use Pyxis Capital?
The Team at Pyxis Capital have extensive knowledge of bridging finance and take time to understand a client’s needs and requirements.
You will have a single point of contact from start to finish and will also be provided with direct contact details for one of our Company Directors.
Most importantly you won’t be left with the finding an Exit Strategy from your bridging finance facility. As this is something that will be researched on day one and if possible, agreed in principle with a long-term lender.