What is bridging finance?

Bridging finance (often called a bridging loan) is short‑term funding designed to cover immediate cash needs until a longer‑term solution is available. Bridging is typically secured against commercial property, development land or business assets and is structured to be repaid once a planned exit occurs — for example a sale, refinance, grant payment or long‑term loan.

Common bridging features:

• Term: usually from a few weeks up to 12–24 months.
• Security: commercial property, development land, plant & machinery, or other business assets.
• Loan sizes: from around £10,000 upwards (our matching service focuses on facilities from £10k+).
• Types: closed bridging (fixed exit date) and open bridging (no fixed exit date).

Typical uses include auction purchases, releasing value to start construction, short‑term working capital tied to property, or funding energy‑saving installations while waiting for grant or rebate payments.

Why businesses choose bridging loans for time‑sensitive purchases

When speed and certainty matter, bridging lenders can be the solution. Traditional finance routes (bank mortgages or term loans) can take weeks or months — too slow for an auction, a conditional purchase deadline, or a time‑sensitive contract. Bridging loans are designed to be fast and flexible.

Primary benefits:

• Speed: lenders and brokers who specialise in bridging can reach a decision and fund far quicker than standard lenders.
• Flexibility: security packages and repayment options are often tailored to the asset and exit plan.
• Short‑term certainty: secures the opportunity so you can complete a purchase or begin a project.
• Works with development or sustainability projects: bridging can finance initial works ahead of long‑term funding or grant receipts.

How UK Business Loans matches you to the right bridging lenders

UK Business Loans is a specialist introducer — we don’t lend. Our role is to find the lenders or brokers with the appetite, speed and product to suit your time‑sensitive requirement. The usual process is straightforward:

1. Quick enquiry (2 minutes): you complete a short form with funding amount, purpose (e.g. commercial purchase, construction, sustainability), asset details and contact information. Remember: this is an enquiry, not an application. Free Eligibility Check.
2. Matching: we match your case to lenders and specialist brokers in our panel who typically respond rapidly. If your purchase is urgent (auction date, exchange deadline) tell us — it helps prioritise your enquiry.
3. Quotes & next steps: matched providers contact you to gather further information, instruct valuations and lawyers where needed, and provide indicative or formal offers. You compare terms and decide which lender/broker to proceed with.

Typical response times: initial contact is often within hours during business hours; conditional offers can follow in days depending on valuation and legal work. If you want to explore broader options for property and project borrowing, see our commercial finance page on commercial finance for other solutions.

Get Quote Now — complete the short enquiry to be matched quickly. Your enquiry will not affect your credit score and is provided without obligation.

Typical costs, eligibility and security

Bridging finance is priced to reflect speed, short term and risk. Costs vary widely by lender, asset quality and exit certainty.

Common cost elements:

• Interest: usually higher than long‑term mortgages; may be charged monthly, rolled up or paid via a capitalised interest structure.
• Arrangement fees: typically a percentage of the loan (for example 1–2%) or a fixed fee.
• Valuation and legal fees: paid by the borrower upfront or deducted at completion.
• Exit/early repayment fees: some lenders charge fixed exit fees or early repayment penalties.

Eligibility considerations:

• Security and loan‑to‑value (LTV): commercial LTVs often range 60–75% depending on asset and lender appetite.
• Exit plan: lenders want a credible repayment route — sale, refinance, grant receipts or conversion to longer‑term finance.
• Company financials and credit: prepared accounts, management accounts and details of any existing charges are usually required.

Risks: bridging is more expensive than longer‑term finance. Only use it when timing, certainty and preserving an opportunity outweigh the higher short‑term costs. We connect you with lenders who will set out all fees and terms so you can compare clearly.

Use cases — construction deposits and sustainability projects

Construction site purchase (example)

A regional contractor wins a tender but must buy a small commercial plot to start work. Conventional finance would delay the start. The contractor uses bridging finance to buy the site immediately. After initial works and securing a development mortgage or contractor finance, the bridge is repaid.

Sustainability installation while awaiting grant (example)

A retail chain needs to install rooftop solar and battery storage to reduce operating costs and meet sustainability targets. Grant funding is approved but not yet paid. A short‑term bridge funds the installation; when the grant arrives the business repays the bridge and switches to a cheaper refinance if desired.

Both examples show how short‑term certainty can unlock long‑term commercial benefit. To start your enquiry and see which lenders can help you move quickly, Get Started — Free Eligibility Check.

Alternatives to bridging finance

Bridging suits urgent, asset‑backed needs. If speed is less critical, consider:

• Commercial mortgages: lower rates but slower to arrange.
• Asset finance: for equipment and vehicles specifically.
• Invoice finance: unlock cash tied up in unpaid invoices.
• Overdrafts or short‑term business loans: useful for modest, quick working capital needs but may have lower borrowing limits.

Use bridging when timing is essential and you have a clear exit. If you’re unsure, our matching service can surface both bridging and alternative options for you to compare — Free Eligibility Check.

How to prepare before you apply — speed starts with organisation

To keep the bridging timeline tight, have these ready:

• Company details (registered name, registration number, recent accounts)
• Purpose of loan and clear exit plan (sale date, refinance intent, grant timetable)
• Asset information (address, estate agent brochure / purchase paperwork, site plans)
• ID and KYC documents for directors as required by lenders
• Any existing charges on the asset or company (disclose early)

Tip: Mark urgent dates (auction completion, exchange deadlines) in your enquiry so matched lenders know to prioritise the case.

FAQs — quick answers

How fast can I get funds?

Initial matching contact is often within hours. Funding can be completed in days to a few weeks depending on valuation, solicitor work and title. Tell us if you have fixed deadlines.

Will submitting an enquiry affect my credit score?

No — completing the UK Business Loans enquiry is not a loan application and will not affect your credit score. Lenders may carry out credit checks later if you proceed.

What loan sizes are available?

We arrange bridging and commercial facilities from around £10,000 upwards through our lender/broker partners.

Do you provide the loan directly?

No. UK Business Loans is an introducer that connects you with lenders and brokers; any loan agreements are made directly between your business and the lender/broker.

Do I need an exit plan?

Yes. Lenders expect a credible exit route (sale, refinance to a mortgage or development facility, grant receipt, etc.). A clear exit reduces cost and increases the chance of approval.

Ready to secure time‑sensitive finance?

If you need fast commercial bridging for an urgent purchase, construction start or sustainability installation, complete our short enquiry and we’ll match you to lenders and brokers who can move quickly. Submitting the enquiry is free, non‑binding and won’t affect your credit score.

Get Quote Now — Free Eligibility Check

We are an introducer and do not provide loans or regulated financial advice. All lending decisions and terms are made by the lender or broker you choose to proceed with.