Commercial bridging loans
Fast, Flexible Finance for Business and Investment Property
Unlock value, seize opportunities, and keep momentum
In commercial property and business, timing is everything. Whether you’re acquiring premises, refinancing before a term facility, or raising capital against owned assets, commercial bridging loans offer the speed, flexibility, and leverage that traditional lenders often can’t match.
At Aura Capital, we arrange bespoke short-term commercial bridging loans across the UK — designed to help investors, developers, and business owners act decisively, whether it’s an auction purchase, refinance, or working capital release.
With access to specialist, broker-only lenders and a strong legal and valuation panel, we deliver approvals in 24 hours and completions within days, giving you certainty when opportunity won’t wait.
What is a Commercial Bridging Loan?
A commercial bridging loan is a short-term finance solution secured against a commercial or semi-commercial property, typically used for periods between 3 and 24 months.
It’s designed to bridge a funding gap — enabling fast property acquisition, refinance, or equity release until a longer-term finance solution or sale is achieved.
Unlike traditional commercial mortgages, which can take months to complete and require extensive underwriting, bridging finance prioritises speed and flexibility.
Lenders focus primarily on the asset value and exit strategy, rather than full trading history or complex credit metrics, which makes it ideal for time-sensitive opportunities.
Typical use cases include:
Purchasing a commercial property at auction or below market value
Refinancing to clear an expiring loan or settle tax/creditor pressure
Releasing equity for working capital, refurbishments, or new acquisitions
Converting or repurposing commercial space (e.g., retail to residential)
Bridging while awaiting a long-term commercial mortgage or sale
Types of properties eligible
Commercial bridging loans can be secured against a broad range of income-generating or owner-occupied properties, including but not limited to:
Offices and business parks
Industrial units and warehouses
Retail units and high street shops
Mixed-use (semi-commercial) buildings
Pubs, restaurants, and hospitality venues
Care homes, nurseries, and medical centres
Land with or without planning consent
Student accommodation and HMOs (commercial valuation basis)
Lenders assess value primarily via a RICS commercial valuation, considering rental income, yields, location, and market comparables.
Where properties are vacant or partially let, finance remains possible — particularly with a credible re-letting or exit plan.
Why use a Commercial Bridge?
1. Speed of execution
Commercial bridging loans can complete in 5–10 working days, compared with 8–12 weeks for standard commercial mortgages. That’s critical when bidding at auction, satisfying a seller deadline, or refinancing to avoid default.
2. Flexible underwriting
Lenders focus on asset value and exit rather than rigid affordability metrics, meaning limited trading history, imperfect credit, or complex structures aren’t automatic barriers.
3. Cash flow freedom
Most facilities allow interest to roll up (retained), freeing up cash flow during the loan term so you can focus on completing works, selling, or restructuring.
4. Equity release
Commercial bridging can unlock up to 70–75% of property value, giving you fast access to capital without selling or remortgaging through traditional lenders.
5. Strategic agility
The commercial market moves fast — being able to act decisively when opportunities arise is the difference between securing and missing out.
A well-structured bridge lets you buy first, plan later, then refinance or sell strategically.
Typical loan structure and terms
Every lender has its own appetite, but typical commercial bridging loan terms are:
Loan size: £100,000 – £25m+
Loan-to-Value (LTV): up to 75% of current market value
Term: 3–24 months (extensions negotiable)
Interest rate: from 0.75% to 1.25% per month depending on asset, leverage, and exit
Arrangement fee: usually around 2%
Exit fee: often 0–1% (we’ll negotiate this down where possible)
Valuation: full RICS commercial valuation or desktop for speed
Security: first legal charge (additional assets accepted as security)
Speed: decisions in 24 hours, completion in 1–3 weeks
All loans are bespoke, structured around your exit plan, whether that’s a refinance, sale, or business restructure.
When Commercial Bridging Finance makes sense
Acquiring new commercial premises
When you find the perfect site for expansion or investment but need to act fast, a bridge lets you buy now and refinance later — locking in price and opportunity.
Auction purchases
Commercial properties bought under the hammer must complete in 28 days.
A bridge ensures you can meet that deadline confidently and still have time to arrange your long-term commercial mortgage.Refinance or repay an expiring loan
If your commercial mortgage or development facility is due to expire and your refinance isn’t ready, an exit bridge protects your position, avoiding penalties or repossession risk.
Equity release for cash flow or reinvestment
Release capital from existing property assets to fund refurbishments, tax payments, working capital, or the deposit on a new acquisition.
Change of use or value-add projects
Use a commercial bridge to fund works like converting upper floors into flats, changing planning class, or enhancing energy efficiency — increasing value before refinancing.
Business acquisition or restructure
Some lenders allow bridges secured on trading premises to fund mergers, management buyouts, or business rescue scenarios, provided the underlying asset offers solid security.
Commercial vs Semi-Commercial Bridging Loans
While both use commercial-style underwriting, the asset type defines key differences:
Commercial bridging covers wholly non-residential properties (e.g., warehouses, offices, retail units).
Semi-commercial bridging applies where part of the building is residential (e.g., shop with flat above).
Semi-commercial assets often achieve higher LTVs (sometimes 75–80%) and attract more lender appetite due to diversified security.
Purely commercial assets depend more on lease terms, tenant covenant strength, and location.
At Aura Capital, we arrange both — tailoring the facility to the income profile and exit rather than the asset label.
Exit strategies that lenders accept
The exit is the backbone of every bridge. For commercial transactions, lenders commonly accept:
Sale of the property — typically when refurbishments or value-add works complete.
Refinance onto a term commercial mortgage once trading history or lease profile stabilises.
Refinance onto a BTL/portfolio facility (for semi-commercial or mixed-use).
Development finance refinance where planning is granted and construction begins.
Corporate refinance or repayment from business proceeds.
Demonstrating a clear, credible exit path keeps rates competitive and speeds up approval.
Common eligibility factors
Lenders typically assess the following when considering your application:
Property type and location: sound asset with realistic resale or refinance potential.
Valuation and condition: professional RICS valuation confirms security.
Borrower profile: experience helps, but first-time commercial borrowers can still qualify with professional support.
Credit history: minor adverse or historic issues often acceptable.
Exit plan: proven, credible, and time-bound.
Company structure: SPV, trading company, or personal — all possible.
Aura Capital works with lenders who value practicality over paperwork, meaning real-world solutions, not box-ticking.
The commercial bridging process
1. Indicative quote within 24 hours
Send us a summary: property address, value, loan amount, and exit strategy.
We’ll issue an indicative term sheet within one working day, outlining rates, LTV, and costs.
2. Underwriting and valuation
Once agreed, valuation and legal workstreams start immediately.
We coordinate both sides to keep timelines tight and avoid unnecessary delays.
3. Legal and completion
Upon valuation return and legal sign-off, funds are released.
Completion can often happen within 7–14 days, depending on complexity.
4. Loan management and exit
You proceed with your project, works, or refinance.
Interest can be serviced monthly or rolled up.
On completion of the exit (sale/refinance), the bridge is repaid in full.
Costs and fees explained
The key cost components of a commercial bridge are:
Interest rate: typically 0.75%–1.25% per month, depending on risk and LTV.
Arrangement fee: around 2% of loan amount.
Valuation fee: payable directly to the valuer; dependent on property type and size.
Legal costs: both lender and borrower sides (Aura can help keep these predictable).
Broker fee: fully disclosed and transparent.
Exit fee: often negotiable — many of our lenders charge no exit fee.
We structure the deal holistically — optimising your net position (rate + fees + term), not just the headline rate.
How lenders assess value and security
Valuations are performed by RICS-accredited commercial valuers who consider:
Location and demand profile
Lease terms and covenant strength
Market rent and yield
Physical condition and EPC
Comparable transactions and investment appetite
Where property is vacant, valuation may rely on reinstatement value and re-letting potential.
Aura Capital always coordinates valuation early to avoid bottlenecks.
Example Scenarios
Example 1: Retail-to-resi conversion, London
An investor secured a retail unit with vacant upper floors for £950,000.
A £700,000 commercial bridge (73% LTV) funded acquisition and light works.
After securing planning for 3 flats, the property refinanced to a development facility at £1.3m GDV — adding £350k uplift.
Example 2: Warehouse refinance, West Midlands
A manufacturer needed to refinance an expiring £1.2m facility and release cash to expand operations.
Aura arranged a £1.4m bridge, rolling up interest for 12 months.
Funds repaid old lender and released £150k working capital — new long-term facility arranged post-refurbishment.
Example 3: Care home acquisition, South Coast
A trading operator used a £2.5m bridge to acquire and refurbish a 30-bed home.
Exit via specialist healthcare mortgage once CQC registration updated.
Completion in 10 working days saved the deal and secured £400k equity upside.
Example 4: Mixed-use refinance, Bristol
A landlord refinanced a shop and three flats valued at £1.1m, clearing legacy debt.
£800k semi-commercial bridge allowed rental stabilisation and property improvements before term BTL refinance — increased yield by 20%.
Common pitfalls to avoid
Unclear exit strategy – lenders require clarity on how repayment will occur.
Delays in valuation or legals – instruct early and provide complete documents.
Ignoring vacant possession requirements – clarify tenancy status upfront.
Over-leveraging – keep realistic margins to weather market changes.
Not accounting for rolled-up interest – ensure total facility covers interest and fees.
EPC non-compliance – for lettable assets, confirm EPC rating meets minimum standards.
Aura Capital manages each of these from the outset to keep your deal watertight.
FAQs
How fast can I complete a commercial bridging loan?
We can often complete within 5–14 working days, depending on valuation and legal turnaround.
Can I get a bridge if the property is vacant?
Yes, provided there’s a clear exit plan — such as re-letting, sale, or redevelopment.
Do I need trading accounts?
Not always. Many lenders assess the deal primarily on asset value and exit strategy, not trading history.
What’s the maximum LTV?
Typically up to 75% of current market value, higher with additional security.
Can I roll up interest?
Yes, most borrowers choose retained or rolled-up interest to preserve cash flow.#
Can I refinance development property?
Yes — if your development has reached completion or is income-generating, we can refinance to an exit bridge.
Is adverse credit acceptable?
Often, yes. Strong security and a clear exit can offset minor historic credit issues.
Can limited companies and SPVs borrow?
Absolutely. Most lenders prefer borrowing through an SPV or trading entity structure.
Why choose Aura Capital
Speed & certainty: DIPs in 24 hours, completions in 1–3 weeks.
Market access: broker-only commercial lenders with appetite for complex or time-sensitive deals.
Tailored structuring: optimise leverage, rate, and exit profile for maximum ROI.
Experience across sectors: retail, industrial, office, leisure, mixed-use, and healthcare.
Transparency: clear fees, clear timelines, and clear communication.
End-to-end service: we handle valuation, legal coordination, and lender negotiation — you stay focused on your deal.
Talk to us today. Whether you need to buy fast, refinance, or release capital — we’ll structure a commercial bridge that fits your strategy and timeline.
How to get started
Send the following details for a same-day quote:
Property address and description
Purchase price or current value
Loan amount required and purpose
Expected term and exit plan
Borrower details (SPV or individual)
We’ll respond within 24 hours with an indicative term sheet outlining rate, LTV, and completion timescale.
Why choose us?
Quick Decision-Making: Time-sensitive transactions are our specialty. We have Commercial no valuation products which can expedite your application.
Lower Cost: With a wide array of commercial bridging loan products we have a product to suit every situation in a cost effective manor.
No Hidden Fees: Transparent pricing with no exit fees or penalties for early repayment.
Expert Support: Our experienced team will guide you through the process and tailor a solution to your needs.
Wide Eligibility: Loans available for various commercial properties, including offices, retail spaces, industrial units, and mixed-use developments.
Eligible commercial properties
Offices – Corporate buildings, serviced office spaces, and coworking hubs.
Retail Units – Shops, shopping centres, and high-street properties.
Industrial Spaces – Warehouses, factories, and logistics hubs.
Hospitality and Leisure – Hotels, restaurants, and entertainment venues.
Mixed-Use Developments – Properties combining residential and commercial elements.
Commercial to residential conversion – Properties which can be converted to residential using permitted development.
Pubs - Both trading and vacant pubs.
Is your property not on the list? Get in touch with our expert team today to explore your options.
