Using Bridging Finance to React to Opportunities

Using Bridging Finance to React to Opportunities

Chris Whitney

Bridging finance can be used as a strategic tool that allows high-net-worth individuals and entrepreneurs to react quickly to unexpected, high-potential opportunities. 

Accessing Capital To React To Opportunities

In today’s market, the best opportunities come and go at speed. However, if you are an investor or high-net-worth individual, you’ll usually have very little capital available to take advantage of these projects. Your wealth is likely to be tied up in businesses, the stock market, or property, and you’re unlikely to have significant cash instantly available to fund new projects. The more capital you require, the harder it is to find ways to extract the necessary liquidity from your personal wealth without inhibiting yourself financially. 

Bridging loan brokers offer strategic answer to this problem. Using your property as collateral, you can borrow capital at competitive rates to capture these opportunities. There is no upper limit on this type of finance, and you will be able to use what you borrow for various projects and purchases. When you can access the right lenders, it’s possible to borrow seven or eight-figure finance quickly.

Which Opportunities Can You Pursue?

At its most basic, you can use bridging finance to purchase or redevelop a new have-to-have-it primary residence. Alternatively, you might want to buy or develop a buy-to-let property, commercial real estate, land, or purchase additional properties as investments. Read more about land bridging finance.

You can also use bridging finance more creatively. If a ‘bargain’ superyacht, private jet or supercar comes onto the market, you could use bridging finance to buy it. Likewise, bridging might also be an option if you want to settle a personal debt without going through traditional lending routes.   

If you are expecting a significant windfall from the sale of a business, property, a divorce settlement or inheritance, but don’t want to sell assets to create liquidity to pursue an opportunity, bridging finance can be a perfect short-term financing solution.  

If you have the right profile and the right security to offer lenders, you will have almost unlimited options. 

You can take advantage of bridging finance even if:

  • You have complex or low income
  • A significant portion of your wealth is tied up in assets like property
  • You know banks and mainstream lenders won’t want to lend for the project you want to explore
  • You have an ambitious project and aggressive plans
  • The opportunity you wish to pursue requires significant borrowing

Lock In Opportunities Quickly

The bridging loan underwriting process moves fast. Where obtaining a mortgage or other types of lending can take months, using a bridging loan will be able to draw down borrowed capital in just one or two weeks. The speed with which you can access capital through a bridging loan makes this type of lending particularly attractive. 

Borrow Significant Amounts

The amount you want to borrow doesn’t encumber the bridging loan underwriting process: smaller bridging loans don’t take longer to access than a loan of several million pounds. You will usually be able to access funds in just a couple of weeks, or less, even for high-value financing.  

Suited For Aggressive Plans

Bridging lends itself to entrepreneurs and investors with aggressive or speculative plans. Lenders will have an appetite to let you borrow even if you have ambitious, high-value projects. As long as your plans are feasible and your lender feels they are achievable, using bridging finance for very ambitious projects is a real possibility. 

Finance Diverse Assets

As previously mentioned, bridging finance isn’t limited to property purchases. It’s less common, but you can use bridging finance to acquire high-value, luxury items like superyachts or supercars. It’s a very niche part of the market and few lenders operate in the space, but if you have the right profile and can give lenders comfort in your ability to repay the loan, anything is possible.

Contact Enness

If you have a pressing problem or need access to finance quickly, Enness will be able to help. If bridging finance is a good fit for you, Enness will be able to source initial offers for you in less than 24 hours. Contact Enness for a no-obligation chat to discuss bridging finance.