Need short-term funding? Bridging finance can help.

If you're facing a temporary cash flow crunch, such as waiting on a property sale, a lump sum payment or another expected source of funds, bridging finance could be the right solution for your business.

Imagine you've found the perfect new business premises, but your current property hasn't sold yet. Or maybe a lucrative business opportunity has come up, but you don’t have immediate access to the capital needed to act. Bridging Finance is designed to cover that gap, providing fast and flexible funding when traditional financing just isn’t quick enough.

But how do bridging loans actually work? When are they the right choice? And what potential risks should you consider? Let's break it all down.

What Is Bridging Finance?

Bridging finance is a short-term funding solution that acts as a financial “bridge”, giving you fast access to cash while you wait for larger sums to come through, like a property settlement, business funding or customer payments.

Key Features of Bridging Finance:

Fast access to cash: Bridging loans are designed to be arranged quickly, sometimes within just 72 hours with lenders like Bizcap

Secured by assets:  Typically secured against property or business assets, allowing you to borrow based on the value of what you own.

Versatile use: Whether you're in real estate, running a business or need temporary funding, bridging finance helps you cover short-term expenses, seize opportunities, or manage unexpected costs.

At its core, bridging finance ensures you have the liquidity to keep your business or investment plans moving, even when your incoming funds are delayed.

How Does Bridging Finance Work?

Bridging loans provide quick capital to cover immediate needs while you wait for a guaranteed source of repayment. Here’s how it generally works:

  1. You apply for the loan. Lenders assess your asset’s value and your ability to repay once your expected funds arrive.
  2. You receive the funds quickly. Approval times can be much faster than traditional loans—sometimes within days.
  3. You use the funds. Whether it’s securing property, covering short-term cash flow gaps, or funding a business project, you can access capital immediately.
  4. You repay the loan. Once your expected funds come through (from a property sale, refinancing, or another source), you pay off the loan, including interest and any fees..

Bizcap’s Bridging Finance offers loans between £150K to £750k, with funding available in as little as 72 hours. Plus, our rates are up to 65% lower than standard secured loans, making it a cost-effective option for short-term borrowing.

What’s the Difference Between a Bridging Loan and a Traditional Loan?

Bridging finance is designed for short-term use, making it a great option when timing is critical, and you can repay the loan in the near future.

What Can You Use as Security for a Bridging Loan?

Most bridging loans are secured against property, but lenders may also accept:

  • Commercial real estate
  • Residential properties
  • Business equipment or machinery
  • Land (depending on its development potential)

The type of asset you use as security can affect your loan amount, interest rate, and approval terms.

What Are the Benefits of Bridging Finance?

Bridging finance isn’t just about speed, it offers a range of advantages:

  1. Fast access to capital: Get funding in days, not weeks
  2. Flexible repayment terms: Repay when your expected funds arrive instead of making fixed monthly payments.
  3. Seizing opportunities: Buy property before selling your existing one or invest in business growth at the right moment.
  4. Cash flow support: Cover operational costs while waiting for payments.

What Are the Risks of Bridging Finance?

Like any financial product, bridging loans come with risks. The biggest ones to consider include:

  1. Higher interest rates: Because they’re short-term, bridging loans often have higher interest rates than traditional loans.
  2. Potential repayment challenges: If your expected funds (e.g., a property sale) are delayed, you might struggle to repay on time.
  3. Secured against an asset: If you can’t repay, the lender could seize the asset you used as collateral.

To mitigate these risks, it’s crucial to have a clear exit strategy and a solid plan for repaying the loan when your expected funds arrive.

How Much Can You Borrow with Bizcap's Bridging Finance?

Bizcap offers tailored bridging finance solutions with loans ranging from £150K to £750k, funded within 72 hours. With significantly reduced rates—up to 65% lower than standard secured business loans—Bizcap makes short-term borrowing cost-effective.

Eligibility Criteria

To qualify for Bizcap’s bridging finance, you’ll need:

  • An active CRN
  • Ownership of property
  • A clear exit strategy for repayment

As the United Kingdom's most open-minded lender, Bizcap considers applicants with existing loans or imperfect credit scores.

Can I Use Bridging Finance for Business Purposes?

Yes! While commonly used for property purchases, bridging loans are also used by businesses for:

  • Covering short-term cash flow gaps
  • Purchasing inventory at a discount
  • Funding urgent projects while waiting for long-term finance
  • Paying off tax liabilities or unexpected expenses

When Should You Use Bridging Finance?

Bridging finance is a powerful tool when used strategically. Consider it if:

  • You're buying a property before selling another – Avoid missing out due to timing issues.
  • You're waiting on a large payment or settlement – Keep operations running without disruption.
  • You need short-term capital for a business opportunity – Take advantage of time-sensitive deals or investments

Final Thoughts

Bridging finance isn’t for everyone, but when used wisely, it can be a game-changer. It’s fast, flexible, and can help businesses navigate financial gaps without missing opportunities.

Thinking about bridging finance? With Bizcap’s bridging finance you can plug cash flow gaps at heavily reduced rates. Apply Now!

‍