The second most popular reason or use for bridging finance is quite simply as a method for raising quick finance. Bridging loans tend to be very flexible and can be used for a multitude of reasons. On a regular basis we arrange bridging loans for clients who need to pay tax bills, want to raise money for business activities, want to buy an incomplete or derelict property for redevelopment, need cash to pay off arrears to avoid repossessions, need to consolidate debts etc. The list of potential uses for bridging finance is virtually endless.
In this example of financing with a bridging loan, capital raising was required on a client’s property portfolio for a short period of time to enable him to improve the condition of some of the BTL properties already owned and to take advantage of another business opportunity. The client obtained a bridging loan, improved the properties and purchased the new business. He now has a profitable business which enabled him to pay back the bridging loan and obtain a higher rental income on the improved BTL properties