£1.1m Bridging Loan for Business Expansion

A well-established UK business owner approached Global Bridging Finance after identifying an opportunity to acquire a larger freehold commercial premises to support rapid growth. The existing premises had become operationally restrictive, and the new property, a prominently located mixed office and light industrial building, offered both increased capacity and long-term capital appreciation.

The property was valued at circa £2.4 million, and the vendor required an exchange within 21 days due to a competing buyer. While the client’s business demonstrated strong turnover and profitability, arranging a traditional commercial mortgage within the required timeframe proved unrealistic. The underwriting process, combined with detailed financial assessments, would have risked losing the property entirely.

The client therefore required a Bridging Loan for Business to secure the acquisition quickly, with the intention of refinancing onto a longer-term commercial facility once operations were stabilised in the new premises.

We structured a £1.1 million first charge bridging facility at approximately 46% loan-to-value, secured against the new property. The loan was arranged over a 12-month term, providing sufficient time for relocation and fit-out works, and for a subsequent refinance onto a commercial mortgage. Interest was rolled up to preserve working capital during the transition period.

Close coordination between valuers, solicitors, and the lender ensured a streamlined process. Funding is completed within 16 working days from formal instruction, allowing the client to exchange contracts within the vendor’s strict deadline.

The agreed exit strategy was a refinance onto a long-term commercial mortgage once trading from the new premises was fully operational.

This case highlights how a Bridging Loan for Business can provide decisive short-term funding for commercial acquisitions, expansion projects, or strategic relocations, enabling business owners to act quickly without disrupting operational liquidity.