Small businesses, especially those who work within extremely saturated industries struggle to secure funding through traditional methods, such as through investment and traditional bank loans. High-street lending is becoming increasingly unpopular as big banks and building societies are losing their appetite for risk amidst an uncertain economic climate.
Many will agree that SME’s are the backbone of the UK’s economy, however, as more and more businesses that sell similar products and provide similar services, big lenders are showing more reluctance and are rejecting their applications.
Why Bridging Finance?
Bridging finance is a short-term finance solution that provides business owners with the opportunity to start and grow their business. This is great for entrepreneurs who have a strict deadline that they have to meet. This is great in situations where you need money relatively instantly but doesn’t have the means or are experiencing a delay in getting the money over to you.
The amount that you would like to borrow will depend entirely on your own circumstances, but this typically ranges from £25,000 to £25,000,000,
Bridging loans are of a short-term nature, which typically ranges from 3 to 12 months. In some instances, this can be increased for 24 months, but again this is entirely dependent on the company.UK Bridging Loans, for example, offers a range of different options depending on your wants and needs.
Capitalise On High-Growth Opportunities
The nature of bridging finance allows you to capitalise on high-return opportunities. For property developers, for example, this could mean getting the funds to buy a car park and turn this space into apartments. Property renovation is one of the fastest-growing UK industries that see a great ROI in a short space of time. With 3D plans, it’s easy for a potential buyer to show interest in the renovated space.