The CA Guide to Commercial Bridging Finance

14th March, 2022

Commercial finance is finance used for investment purposes. Commercial property finance is finance secured against residential property, commercial property or land for investment purposes. Commercial Acceptances provide short-term commercial finance to professional property investors and developers.

Our commercial loans are unregulated, on a first charge basis. Our non-regulated loans are not controlled by the Financial Conduct Authority (FCA), so we do not provide regulated mortgage contracts, where it is either your or an immediate family member’s intention to occupy the property, either now or in the future. A first charge loan means CA holds the primary legal charge against the property.

Commercial Bridging Finance Lenders

Commercial Acceptances has provided short-term property finance since 1982, close to 40 years, becoming part of Close Brothers Group, the UK’s largest independent fully quoted merchant bank, in 2008.

CA was one of the first UK companies to provide bridging loans in London and the South East, our main areas of expertise. We have since widened our reach, but with a disciplined focus on local knowledge. We lend close enough to our base in London that we fully understand the area and market.

We understand tomorrow’s market today. With CA, you’re working with a team of lenders with decades of experience between them. We train our people in all areas of bridging and development finance, so they are fully versed in origination, due diligence, valuations, legals, completions, day-to-day account management and redemptions.

Commercial bridging finance

CA’s commercial bridging finance is available for a range of types of property:

  • Initial application
  • Residential houses and flats (tenanted or vacant)
  • HMO’s
  • Commercial property subject to meeting CA criteria
  • Freehold blocks
  • Land with planning consent for residential developments
  • Mixed-use uni

And we focus our in-depth market knowledge, on London and the Home Counties.

We are Commercial Loan Lenders for your project

We will be delighted to speak with you about a range of projects, including:

  • Open market purchases of properties which have potential for future development. CA has bespoke products should funding ultimately be required to develop the property.
  • Auction purchases. You can contact CA before the auction. Our experienced Lending Managers can offer you a quick decision in principle and provide you with Heads of Terms prior to the auction.
  • Properties that need refurbishment or redevelopment prior to onward sale or to be retained as an investment.
  • Capital for a lease extension or to provide funds for further investments.
  • Properties that offer potential for future development.
  • Land with planning permission for a residential scheme.
  • Commercial property subject to meeting CA criteria.

What do we look for?

To determine if a bridging loan is a suitable funding option for a borrower, we will consider the following:

  • The credit profile of the prospective borrower
  • The applicants’ experience.
  • The type of asset
  • The location of the property
  • The viability of the project
  • The exit strategy
  • The equity contribution
  • The identity of the tenant/s and lease terms, if applicable
  • If the applicant or a family member resides or plans to live in the property? We are unable to lend in these circumstances

If the application is for a development loan, we will also require:

  • A copy of the planning permission
  • Site plans and elevations
  • A breakdown of build costs
  • Details of the contractor and professional team
  • Evidence that you have completed similar projects in the past

If the application is for a tenanted residential or commercial property, we will require the following information:

  • Property income
  • Length, unexpired term and type of the lease
  • Additionally, for commercial properties, the covenant of the tenant/s

We can also lend on vacant commercial property. However, it will need to meet one of the two criteria set out below:

  • The commercial property is being retained for commercial use, and we are satisfied with the demand and viable existing use.
  • You are buying the commercial property and intend to seek planning consent to convert the property to residential. Underwriting will still rely 100% on the existing viability—our valuer must confirm that the commercial property in its current state is viable and will have good demand.

Some other things you need to know:

  • We will need to take a first legal charge over the property
  • We will request Company Debentures and Personal Guarantees to support the Bridging Loan
  • We will always consider renewing the Bridging loan as it approaches maturity and will be available to you to discuss your requirements.

CA’s Bridging finance process

  • Initial application
  • Heads of Terms
  • Due diligence, KYC and account opening formalities
  • Panel valuer quotes, and if accepted by the applicant, valuers are instructed
  • Solicitor instructed
  • Formal approval process
  • Completion
  • Build float advances (development finance)
  • Renewal/Redemption

Are you ready to move forward with your Commercial Bridging loan?

Get in touch by telephoning 020 3857 6350 or emailing us at info@acceptances.co.uk.

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