Five Benefits of Using a Bridging Loan as a Business Owner in the Current Climate REVEALED

Five Benefits of Using a Bridging Loan as a Business Owner in the Current Climate: 

Often, finance can be a huge hindrance to SME’s, and even more so in this economic climate. 

With this in mind, here are some of the many benefits of using a bridging loan as a business owner:

1. Effective alternative for those that are struggling to get a CBILS

  • With the Coronavirus Business Interruption Loan (CBILS) proving to be difficult to navigate, and many businesses complaining that their loans are being declined – bridging loans are a reliable and fast source of funding for business owners. 
  • As they are backed by property, the approval rate tends to be very high and larger amounts can be borrowed reliably.

2. Allow you to make quicker business decisions in this uncertain time

  • They can be used to complete property purchases quickly, which can make the difference between bagging a property bargain or missing out entirely. 
  • The ability to move quickly in uncertain times and could be the key to ensuring you can maximise profitability in these difficult times.

3. Gives you the opportunity to make further profits

  • Bridging loans can be used to fund profitable endeavours, such as stock purchases, which can then be turned around for a profit – with just a small amount of interest to be paid for the funds. 
  • This can be especially profitable for a larger borrowing requirement.

4. Best solution for those who want to purchase and renovate a property

  • For those looking to purchase and renovate a property, a bridging loan is usually the best option.
  • Some lenders will even provide the funds needed to undertake the renovation. 
  • This can see a big uplift in the property value with relatively low costs of borrowing.

5. Efficient way of purchasing property at an auction

  • When purchasing new premises at auction, a commercial mortgage is usually unrealistic due to the time taken to complete the process and the fact that auction purchases usually have a 28-day completion window. 
  • This means that to pick up a property at auction, a bridging loan is usually the only viable choice for raising finance.