Why Shop Around For Commercial Bridging Finance?
If you are considering applying for a commercial bridging loan, perhaps because the sale of your existing business premises has been delayed, you will wish to obtain the most competitive deal that you can. By doing so, you will hopefully end up paying less in interest and fees.
Rather surprisingly, not enough business owners bother to shop around with many merely contacting their bank with whom they maintain their business account in the hope that they will assist them and offer them a good bridging finance package. Yes, the bank may seem the easy option because they will know how the business current account has been conducted and, if the business are borrowing funds from the bank by way of the likes of an overdraft facility or loan, they will have seen the companies audited accounts and possibly their up to date management figures.
However, although it may seem quicker to use your bank for such finance, it does not mean that they will offer you the most competitive deal in the market. Therefore, it would be a sensible idea to look at alternative sources of bridging finance to see if you can arrange the borrowing at a lower rate of interest and a lower set of fees.
If you think about it, just a 0.25% difference in the interest rate can make quite a difference to the amount that you will end up paying back. For instance, if you compared the financial impact of this interest rate differential on a bridging loan of £1 million for a 6-month period that is £1,250 which we are sure you will agree is no small sum. If you were then able to save a few hundred pounds on the range of fees being charged, these monies could be better spent elsewhere in your business.
Of course, shopping around could involve you giving up quite a bit of time that would be better spent in building your business. Therefore, why not contact Commercial Mortgage Link and we will arrange for a commercial bridging loan specialist to try to help you source a competitive bridging loan.