The business world is unpredictable. Certain industries are dependent on regional influxes, or forecastable trends. Where unexpected disturbances arise, business owners can struggle. A borrower may turn to us for support with their company as, unfortunately, it could’ve fallen on hard times.
To keep the firm afloat, they’d likely need to raise capital to support their business’s cashflow. An unexpected, yet temporary revenue loss can unfairly derail otherwise promising long-term potential.
Sometimes, to push through these kinds of tough periods, borrowers often hope to raise capital against once of their commercial properties. We can assist with this. But, with a lack of revenue on the immediate horizon, we’d need to work hard to ensure our funding can be covered down the line.
Unfortunate Timing
To start with, our underwriter would need to work closely with the borrower involved to determine if the cashflow challenge was truly an isolated incident. We’d comb over the relevant paperwork and documentation to determine if the issue was likely to repeat or not. Looking ahead, we’d aim to establish when normality should have returned to the business.
If we generated a rough timeframe for this, we could then turn our attention to the exit strategy. Often, with these kinds of cases, the borrower will aim to sell one of their commercial units to cover our funding.
If this was the case here, we’d look to see if they had any interest from potential buyers. To ascertain how quickly the asset was likely to sell, we’d review its credentials.
We’d explore if it was in a prime location, how easily it could be converted into a residential home, if its underlying industry was in demand etc. So long as there was potential for a sale (and preferably, clear interest), we would likely be able to help deliver cashflow.
Specifically, our Bridge Fusion product could be of particular use here as the two-year term, along with the potential 12-month extension, could allow the borrower to get back on track, sort their accounts, and focus on their exit strategy.
Be Ready for Anything
Businesses across various sectors have faced multiple unexpected (or unwelcome) upheavals in recent years. There was the Brexit fallout, a global pandemic, the mini-budget, Labour returning to power, and more.
While these kinds of events may catch some off-guard, we know that they’re really just par for the course in the economy and property market. We have been lending since 2006 and in that time, we’ve learned to support property investors through countless economic and political headaches.
As further uncertainty looms, we will continue to be there for businesses, individual borrowers, and portfolio landlords.
FAQs
How often do clients approach you needing finance for multiple purposes?
We frequently work with borrowers who need funding for more than just one aspect of a property project. For example, in the holiday‑let market, a borrower could use our facility to refinance an existing loan, carry out cosmetic upgrades on one unit, and invest in new features. We take the time to thoroughly assess each element, ensuring all goals align before structuring a single, cohesive solution.
What kinds of multi-purpose funding do you offer?
Our bridging loans can be tailored to cover several objectives at once. Whether you’re clearing existing debt, funding light refurbishment, adding new amenities, or expanding your portfolio, we have the flexibility to package all those needs into one facility. We also provide second-charge options and specialised products like Bridge Fusion for more bespoke scenarios.
Why is bridging finance a good solution for projects with multiple goals?
Bridging finance offers both speed and adaptability. As a short-term product, a bridging loan allows borrowers to react quickly: settling debts, completing essential works, and seizing market opportunities before committing to long-term finance. Our in-house teams assess every goal together, reducing complexity and making sure funds are available precisely where and when they’re needed.
What market trends make multi-purpose finance increasingly relevant?
The rise of holiday‑let investments and the popularity of staycations have made investors keener to maximise assets quickly. However, competition means properties must be prepared and upgraded rapidly to attract bookings. Meanwhile, traditional long-term lending often can’t accommodate simultaneous exit, refurbishment, and expansion needs. That means specialist bridging solutions are becoming essential for investors to stay competitive.
