Commercial Bridging Loan to Purchase Business Premises Quickly

This case study shows how we helped a successful building contractor secure fast funding to purchase the commercial property they operated from, while also planning a cost-effective exit strategy.

The Challenge

Our clients owned a successful building contracting business and had agreed to purchase the commercial property from which they operated.

Although the sale had originally been agreed some time earlier, the transaction was delayed following a bereavement affecting the vendor. When the sale was finally able to proceed, a strict completion deadline was introduced, leaving the buyers with very little time to arrange funding.

Initially, the client was asked to complete within just 14 days, making a traditional commercial mortgage impractical.

The client needed a funding solution that would:

• Complete within a very short timescale
• Secure the purchase of their business premises
• Provide flexibility for a later refinance
• Keep borrowing costs under control

Our Solution

Positive Commercial Finance arranged a Commercial Bridging Loan with a specialist lender experienced in time-sensitive property transactions.

Although the completion deadline was later extended slightly, the bridging loan ensured the client could proceed with confidence and avoid losing the opportunity to purchase their premises.

From the outset, we also planned the client’s exit strategy. Rather than treating the bridging loan as a standalone facility, we began arranging a refinance onto a long-term commercial mortgage to coincide with the third month of the loan.

By refinancing after month three, the client would avoid any exit charges while moving onto a more suitable long-term funding solution.

Deal Structure

• Loan to 180-Day Value: 70%
• Purchase Price Funding: 73%
• Interest Rate: 0.99% per month (paid monthly)
• Arrangement Fee: 2%
• Exit Fee: None after month 3
• Term: 6 months

The Outcome

The client secured the funding needed to purchase the commercial property within the required timeframe, protecting the future of their business and allowing them to become owner-occupiers of their premises.

By planning the refinance from the beginning, Positive Commercial Finance also ensured the client had a clear and cost-effective route onto a long-term commercial mortgage, avoiding unnecessary finance costs.

This case study demonstrates how a Commercial Bridging Loan can provide fast, flexible funding for business owners while supporting a smooth transition to permanent finance.