Bridging Loan with 1st Mortgage: A Lifeline for Small Business Property Investment

Mark Hutchins

Mark Hutchins

Director - Secured Lending

Bridging Loan with 1st Mortgage: A Lifeline for Small Business Property Investment

In the fast-paced world of small business, missing out on an opportunity can be detrimental. This is especially true when it comes to property investment. Finding the perfect location for your business or securing a property with high growth potential can propel your venture forward. But what happens when you find your dream property, yet your existing property sale has a delayed settlement? This is where a Bridging Loan with 1st Mortgage can be a lifesaver.

Bridging Loans with 1st Mortgages: How They Work for Businesses

A Bridging Loan with 1st Mortgage, also known as a short-term business finance loan, is designed to bridge the gap between selling your existing commercial property and purchasing a new one. This allows you to secure the new property while you wait for the sale of your current one to finalise.

Here’s a breakdown of how a Bridging Loan with 1st Mortgage works:

  • Security: The lender uses your existing commercial property (secured by a 1st Mortgage) as security for the loan.
  • Loan Amount: The loan amount is typically based on the equity you have built up in your existing property and the value of the new property you’re purchasing.
  • Short-Term Loan: Bridging Loans with 1st Mortgages are short-term solutions, usually lasting between 3-12 months. This allows you ample time to finalise the sale of your current property without missing out on your ideal new location.
  • Repayments: Bridging Loans typically offer interest-only repayments during the loan term. Once your existing property sells, the proceeds are used to repay the bridging loan and any outstanding balance on your 1st mortgage.

Benefits of Using a Bridging Loan with 1st Mortgage for Your Business

There are several advantages to utilising a Bridging Loan with 1st Mortgage for your small business property investment:

  • Secure Your Dream Property: Don’t let a delayed sale prevent you from acquiring the perfect location for your business. A Bridging Loan allows you to act fast and secure the property before it disappears.
  • Maintain Business Continuity: By securing your new property before selling your existing one, you can minimise downtime and maintain business continuity during the transition.
  • Unlock Growth Potential: Investing in a new property with higher growth potential or improved functionality can significantly benefit your business. A Bridging Loan with 1st Mortgage helps you unlock this growth without waiting.
  • Streamlined Process: Compared to traditional lenders, securing a Bridging Loan with 1st Mortgage can be a faster and more flexible process. This allows you to focus on your business operations while the loan is finalised.
Finding the Right Bridging Loan with 1st Mortgage

Not all Bridging Loans with 1st Mortgages are created equal. Here are some key factors to consider when searching for the right lender:

  • Interest Rates: Bridging Loans typically have higher interest rates than traditional mortgages due to their short-term nature. However, it’s crucial to compare rates from different lenders to secure the most competitive offer. (Here at Secured Lending, we offer competitive rates on Bridging Loans with 1st Mortgages, starting at just 9.95%).
  • Loan Term: Ensure the loan term aligns with your expected sale timeframe for your existing property.
  • Flexibility: Look for lenders who offer flexible repayment options and transparent communication throughout the process.
  • Reputation: Choose a reputable lender with a proven track record of success in facilitating Bridging Loans with 1st Mortgages.
Don’t Let Slow Bank Processes Hinder Your Growth

Don’t let slow bank processes or a delayed sale prevent you from seizing the perfect property opportunity for your business. A Bridging Loan with 1st Mortgage from Secured Lending can bridge the gap and ensure you don’t miss out on your dream location.

How can Secured Lending Help?

Small business restructuring plans in Australia provide a lifeline for struggling enterprises to regain their financial footing and continue contributing to the economy.

Short term business loans play a crucial role in supporting these plans by providing much-needed capital flexibility. If your small business is facing financial challenges, don’t hesitate to explore the benefits of restructuring and consider short term business loans as a viable solution on your path to recovery and success. Consult with financial experts and leverage the available resources to ensure a smooth and successful restructuring journey.

Secured Lending understand the complexities of debt for businesses and the potential benefits of short term loans. Our experienced team is here to guide you through the process  and helping you explore suitable financing options to address your debt effectively. 

Our loan products are designed to provide short term relief in circumstances where funding is not immediately available from traditional sources of finance, such as banks and other first tier institutions. These include:

We aim to implement our solutions as a matter of priority so that you can resume business as usual, with full control of your company.

If you or your client are in need of finance and need to speak to one of our experts, contact us on 1300 795 175 or email us at info@securedlending.com.au

Bridging Loan with 1st Mortgage

Secured Lending

FAST FUNDING SOLUTIONS

Secured Lending focuses on non-conforming, short term funding solutions with incredibly quick turnaround times. So why Secured Lending?
  • We have our own internal property valuation team.
  • We can settle caveats, 1st and 2nd mortgage loans within 24 hours up to $45m.
  • We pride ourselves on being transparent and honest in our approach, always aiming to have an initial assessment back to you in a few hour

Our rates start at 9.95% p.a. with loan terms from 1 – 24 months.

 If you have a scenario to discuss, please call us on 1300 795 175.
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