Bridging Loans for Limited Companies
Many property investors and developers buy through a limited company or SPV rather than in their own name. A bridging loan can be arranged to a company, but lenders look at things a little differently. This page explains how bridging works for limited companies, what lenders usually ask for, and how to prepare.
How bridging works for a company borrower
The loan is made to the company and secured against the property being bought or refinanced, usually with a first legal charge. Lenders focus mainly on the value of the property and a clear plan to repay, rather than on company profits alone. A newly formed SPV can often borrow, because the security and the exit carry more weight than trading history.
What lenders usually ask for
- Company details: certificate of incorporation, shareholders and directors, and details of who controls the company.
- Personal guarantees from the directors, which are common on bridging to companies.
- A valuation of the property, arranged by the lender.
- Evidence of the deposit or equity going in.
- A clear exit: a sale, or a refinance onto a term mortgage.
Typical uses
- Buying a property quickly through an SPV, including at auction.
- Refinancing a property already held in a company.
- Light refurbishment before selling or refinancing onto buy-to-let.
- Releasing capital against a property to fund the next purchase.
Things to plan for
- Interest can be paid monthly, rolled up, or retained from the loan. Each changes how much you receive and what you repay.
- Fees usually include arrangement, valuation and legal costs. Compare the total cost, not only the monthly rate.
- Lenders differ on how they treat regulated and unregulated property. Most company bridging is unregulated, but the property use matters, so it is worth checking at the start.
How we help
Sadi's Commercial Finance, an NACFB and FIBA member based in Chingford, East London, compares bridging lenders for company borrowers and structures the loan around your exit. Speak to a specialist or see our main bridging loans page and our guide to bridging loans for auction purchases.
Frequently asked questions
Can a newly formed company get a bridging loan?
Often yes. Lenders place more weight on the property and the exit than on the company's age, though a personal guarantee is usually required.
Do directors have to give a personal guarantee?
On most company bridging loans, yes. The terms vary by lender, so read the guarantee carefully before signing.
Can I use a bridging loan to buy property through an SPV?
Yes, this is a common use. The loan is made to the SPV and secured on the property.
How quickly can it complete?
It depends on valuation and legal work. Straightforward cases can complete in a matter of weeks, and sometimes faster. Treat any timing as indicative.
Is a bridging loan to a company regulated?
Most are unregulated because they are for investment rather than the borrower's own home, but this depends on how the property will be used. We will confirm this at the start.
Your property may be repossessed if you do not keep up repayments on a loan secured against it.