Bridging Finance
Short-term property finance for business purposes, including eligible purchases, refinancing and refurbishment projects.
Short-term property finance. Bridge the gap.
Bridging finance provides short-term funding secured against property. It can help businesses and property investors complete eligible transactions before longer-term funding or sale proceeds become available.
A clear plan for repaying the loan is essential. This is often called an exit strategy and typically involves selling the property or arranging longer-term finance.
Common uses of bridging finance
Commercial Property
Funding for eligible commercial property purchases and refinancing. Mixed-use properties may also be considered, depending on the borrower, property use and transaction structure.
Property Investment
Funding for eligible investment property purchases, including auction transactions. Residential investment properties may be considered where the transaction falls within the business finance Approven can arrange.
Refurbishment Projects
Funding for eligible improvements or renovations, with repayment planned through a property sale or refinancing. Available funding depends on the property, scope of works and lender requirements.
Use of funds
What are you using it for?
These are the reasons businesses give us when they enquire. Here is where bridging finance usually fits, and where something else usually does.
Commonly used for
Expansion / Growth
A property transaction with a deadline — an auction, or a purchase that has to complete before a sale does.
Debt Refinance
As a short-term bridge to longer-term finance, where the exit is arranged and has a date on it.
Usually a different route
Working Capital
Bridging is priced monthly and built to be repaid quickly. An ongoing need is the wrong shape for it. Usually a business loan.
Cash Flow Support
A timing gap on money you are owed is not a property transaction. Usually Invoice finance.
Equipment / Asset Purchase
Usually Asset finance, which is tied to the asset rather than to property.
Stock / Inventory Purchase
Usually a business loan or a merchant cash advance.
Payroll / Wages
Usually a business loan.
Tax / VAT Bill
Usually a business loan.
Approven arranges unregulated business-purpose bridging only. Eligibility depends on the borrower, the property use and the transaction structure; a business purpose alone does not establish that a transaction is unregulated.
Other / Not sure
Tell us the situation rather than the product. Working out which route fits is the part we do before anything goes to a lender.
The Approven approach
The right finance starts with understanding your property transaction.
We take the time to understand the property, funding requirement, timescales and intended repayment strategy.
We explore available arrangements with the property's value, available security, overall costs and your financial circumstances in mind.
Product information
Eligibility and scope
Approven's bridging service is limited to unregulated business-purpose transactions. Eligibility depends on the borrower, property use and transaction structure; business purpose alone does not establish that a transaction is unregulated.
Interest and fees
Interest may be paid during the term or added to the balance, depending on the agreement. Arrangement, valuation, legal and exit fees may apply. Interest and fees deducted upfront can reduce the amount available to use.
Repayment risk
Sale proceeds and refinancing are not guaranteed. The loan remains repayable when due, and extensions are subject to lender agreement and may involve additional costs.
Guarantees and security
A personal guarantee may be required. Property used as security may be repossessed if the loan is not repaid, and guarantors may be personally liable under their guarantees.
Our role
Approven is a finance broker, not a lender. We arrange funding solely for business purposes, subject to eligibility, provider assessment and approval.
How we're paid
We do not charge customers a broker fee. We receive commission for successful funding introductions, and commission arrangements vary between providers and products. Where a lender’s commission forms part of the cost of the facility it offers, what we are paid can form part of what you pay overall. Where we introduce you to another broker, any referral arrangement and applicable customer fees will be explained before you proceed. The full position is under How we’re paid on our About page.
Bridging Finance. The Approven Way.
Looking to purchase investment property, refinance commercial premises or fund refurbishment works? Tell us about your plans and explore available bridging finance options.
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OTHER FINANCE SOLUTIONS
MORE WAYS TO ACCESS FINANCE
Every business has different funding requirements. Explore alternative finance solutions to support your cash flow, investment and growth.
MCA
Funding assessed against business turnover, including card sales, with payment terms agreed upfront.
Loans
Secured and unsecured business loans to support cash flow, investment and growth.
Invoice
Access a proportion of the value of eligible unpaid business invoices before your customers pay.
Asset
Spread the cost of equipment, machinery and vehicles, or explore refinancing eligible existing assets.