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  • Can be a real lifesaver!
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Bridging Finance for Cash Flow Problems

Smaller businesses occasionally encounter cash flow problems, but when issues with cash flow jeopardise performance and profitability, an affordable bridging loan could help.

The value of a business is calculated on the basis of the total combined value of its property assets and equity. Contrary to popular belief, successful businesses with a higher market value do not always have adequate cash flow.

Free cash flow is just that - liquid capital that the business has immediate access to. Cash is important for all businesses, as it is used to pay employees, settle debts with creditors, and purchase equipment.

In addition, the liquid capital a business has influences its ability to invest in new projects and initiatives. Business expansion and diversification are usually impossible without plenty of liquid capital.

For small and medium-sized businesses in particular, maintaining adequate on-hand cash reserves can prove problematic.

If you would like to learn more about the potential benefits of bridging finance or how bridging loans can support smaller businesses in times of economic uncertainty, contact a member of the team at bridgingfinance.com today.

Why use UK Bridging Loans?

Personal service:

Here at bridgingfinance.com, we take customer satisfaction very seriously. That is why we go the extra mile to provide the best service possible to all of our clients.

Expert advice:

Every member of our team is highly trained and experienced in property and specialist lending products, ensuring our clients get the best products at the best rates.

Flexible lending:

We have access to many specialist lending products that can be tailored to each individual’s needs. We can offer flexible, fast, and cost-effective loans for clients with specific requirements. Deal directly with the lender; no middleman!

Proven track record:

Our track record speaks for itself through our thousands of satisfied clients. Our experience and unrivalled customer service mean that we have many returning clients with whom we have built a long-lasting relationship.

unique

Tech savvy:

We use the latest technology to ensure simplicity, speed, and ease for our clients, as well as highly trained staff to ensure everything runs smoothly.

Tailored loans:

We can tailor loans to suit whatever property funding needs our clients may present. With access to a wide range of lenders, we are able to offer specialist loans at competitive rates.

Frequently asked questions

Why might a business face cash flow issues?

There are numerous reasons why a business of any size may encounter cash flow issues, such as the following:

  • Periods of poor performance: Most businesses will encounter occasional dips in performance and profitability, which can translate to significant cash flow issues.
  • Inefficient cash management: It could also be that the company’s owners or managers have mishandled capital reserves, leaving the business with little room for manoeuvre.
  • Sales on credit: It is the norm for businesses to sell products and services (B2B in particular) on credit, often not collecting payment from clients for 90 days or more.
  • Late or partial payments: Invoice payments from customers made late or not to the full outstanding balance can also lead to major cash flow issues.
  • Simultaneous projects: Where a business invests in multiple projects or initiatives at the same time, it may quickly run short on available capital.

What each of the above scenarios has in common is that it is strictly temporary in nature. Given time, the cause of the cash flow is likely to be resolved, but it may create major difficulties for the business in the interim. This is where bridging loans can help, a short-term, stop-gap solution designed to ‘bridge’ temporary financial gaps like these.

How can bridging finance help with cash flow?

A bridging loan is essentially a short-term cash loan secured against assets of value. Typically available in sums of £10,000 or more (with no upper limits), bridging finance can be issued with an LTV of up to 80% of the assets used to secure the loan. This gives businesses with owned physical assets a great deal of flexibility, as bridging finance can be secured against premises, business equipment, and more. The funds can be made accessible within a few working days, and repayment takes place a few months later in the form of a single lump-sum payment. Charged at a rate as low as 0.5% per month, bridging finance can be great for traversing times of temporary financial turbulence.

Best of all, the qualification criteria for bridging finance are surprisingly flexible. Current business performance and financial history are both inconsequential, just as long as you have adequate assets of value as security for the loan.

Contact details

pinBusiness Address: Office block 2, Kibworth Business Park, Kibworth Harcourt, Leicestershire, LE8 0EX

callTelephone:  0116 464 5554

Opening hours

Mon-Thurs: 9am-8.30pm

Fri: 9am-5pm

Sat: 10am-5pm

Sun: 11am-5pm


For job vacancies please email us on jobs@bridgingfinance.com