If you need funds fast, you may be eligible for a bridging loan

Simple, quick phone application
Finance from £10,000 to £5,000,000
Funding terms from 3 months to 5 years

Bad credit history, large debts – No problem!
High street banks unsupportive
Tenant Farmers welcome

Competitive Rates
Tax Efficient
Decision within 24 hours

Simple, quick phone application
Finance from £10,000 to £5,000,000
Funding terms from 3 months to 5 years
Bad credit history, large debts – No problem!
High street banks unsupportive
Tenant Farmers welcome
Competitive Rates
Tax Efficient
Decision within 24 hours

No matter what you need the funds for and however dire you think your financial position is contact us for a no jargon chat.

Call us on: 01604 969508, email: enquiries@abfltd.co.uk, or enquire online today. Our finance solutions are only available in England, Scotland and Wales.

What is a bridging loan, is it right for me?

A bridging loan is a short-term loan designed to provide temporary financing until a longer-term solution is secured, often used in real estate transactions and property development. It helps “bridge” the gap between buying a new property and selling an existing one, or securing permanent financing.

Bridging loans are commonly used by property developers, property buyers, or businesses to cover urgent cash flow needs, allowing them to act quickly without waiting for funds from other sources.

Enquire about a Bridging Loan

When you need us, we’re here to help you

Alchemy Business Finance Blue Tractor and Closed Bank

Get in touch to see how we can help
We’ll discuss your options
Complete a short application to proceed
Get your decision within 24 hours

Call us today on: 01604 969508, email: enquiries@abfltd.co.uk, or complete the form to get in touch.

Our finance is only available to agricultural businesses based in England, Scotland and Wales.

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“Alchemy were easy to deal with then they funded me for a £350,000 bridging loan for a barn conversion. I’d shopped around and their rates were competitive.”

C.Whyte, Northumbria

Frequently asked questions

When should I consider a bridging loan?

A typical scenario is when you’re looking at buying a property quickly or renovating a property and a mortgage is not available . A bridging loan provides this finance until other finance is put in place.

Other scenarios include the need for short term working capital.

How does a bridging loan work?

Short term funding for up to 24 months.

First charge on a property is used as security.

Strong exit plan to repay the loan in full is required to secure the funding.

Nothing payable until the end of the loan term so no impact on cashflow in the interim.

What is the typical duration of a bridging loan?

Terms range from 6 months to 24 months.

What interest rates are associated with bridging loans?

Depending on the current base rate and the clients specific scenario. They are typically in the range 1% to 1.5% per month.

What fees are involved in bridging loans?

Set up fees in the region of 1.5% to 3% depending if a 3rd party agent is involved. An exit fee is typically 1% of gross loan.

What is the loan-to-value (LTV) ratio for bridging loans?

Maximum 65% of gross loan (i.e net loan plus interest and fees).

Who can apply for a bridging loan?

Anyone as long as you own a property and the loan is for business purposes.

Can I get a bridging loan with bad credit?

Each client is looked at on a case-by-case basis.

What are the repayment options for bridging loans?

Funds and all interest and fees repaid at the end of the loan term.

What is required as security for a bridging loan?

First charge on a property.

Can I use a bridging loan to buy property at auction?

Yes.

Are bridging loans suitable for property development?

Yes.

How quickly can I access funds from a bridging loan?

They can be completed as quickly as 2 weeks but more complicated cases where property title isn’t clean can take several months.

What are the risks of taking out a bridging loan?

The exit plan to repay the loan can’t be completed. This could put your property used as security at risk.

Can I use a bridging loan for business purposes?

With Alchemy Business Finance Ltd they can only be used for business purposes.

What happens if I can’t repay a bridging loan on time?

There is default interest which is higher than the initial contract interest . If an exit can’t be achieved in a timely manner then your property could be at risk.