How to Access Capital Quickly Without Using Credit Cards or Overdrafts

When you need fast access to large-scale funding, credit cards aren't the answer.

Let's look at how bridging loans can help you move quickly.

How to Access Capital Quickly Without Using Credit Cards or Overdrafts

When you need fast access to large-scale funding, credit cards aren't the answer.

Let's look at how bridging loans can help you move quickly.

When you need money fast, credit cards and overdrafts often seem like the obvious choice.

But these options are expensive and might not give you the amount you really need.

Many business owners and property investors find themselves in this position – needing substantial capital quickly but wanting to avoid high-interest consumer credit.

What if there was a better way to raise funds?

One that lets you use your property assets to secure much larger amounts, often at lower costs than credit cards? And is fast!

Bridging loans are helping more and more people access quick capital without relying on traditional banking products.

Whether you’re looking to snap up a property opportunity, need working capital for your business, or want to release equity from your existing properties, bridging finance could be your answer.

In this guide, we’ll look at how bridging loans work, who can use them, and what you’ll need to get started. We’ll also explore why working with an experienced broker could help you access better rates and terms.

Understanding Quick Borrowing Options

Many people turn to credit cards and overdrafts when they need quick funds. They’re convenient and simple.

Overdrafts let you borrow up to an agreed limit from your bank account, while credit cards offer a revolving line of credit.

Both can work for smaller amounts, but they come with drawbacks – high interest charges, low borrowing limits, and they also affect your credit score.

When you look at the real costs, credit cards and overdrafts can be surprisingly expensive.

Credit cards often charge over 20% APR, while overdrafts can cost even more – reaching 35% or higher if your credit isn’t perfect. Plus, credit card charges can be tricky to calculate, leading to unexpected costs down the line. Many people discover they’re paying back considerably more than they expected.

That’s where asset-backed lending can come in useful.

Instead of looking at your income or credit score, these loans use your property as security. This means you can borrow larger sums – £150,000 or more – based on your property’s value rather than your personal finances.

Bridging loans are a prime example.

They’re secured against property and can be arranged much faster than mortgages. You can use them for all sorts of purposes – buying property, funding business growth, or even paying tax bills.

Because they’re secured, lenders can offer better terms than unsecured options like credit cards.

What is a Bridging Loan?

A bridging loan is a short-term property-backed loan that helps you ‘bridge’ a gap in funding.

These loans are designed to solve immediate funding needs, with loan terms usually ranging from 3 to 24 months.

How Bridging Loans Work

You can borrow from £150,000 upwards, using your property as security. These loans are always secured.

The amount you can borrow depends on your property’s equity – lenders usually offer between 65-75% of the property’s value.

You might be able to borrow more with additional security.

While bridging loans use property as security, you’re not limited to property-related purposes.

You can use the funds for nearly any legitimate business purpose – whether that’s investing in UK opportunities or funding international projects. This flexibility sets bridging finance apart from traditional property loans.

Repayment options are flexible; you can either pay the interest monthly or roll it up and pay everything at the end of the term. This can help if you’re not expecting regular income during the loan period.

The key is having a clear ‘exit strategy’ – your plan for paying back the loan. This could be selling a property, refinancing to a long-term mortgage, or using incoming funds from another source.

Speed of Access

Speed sets bridging loans apart from other finance options.

While setting up a mortgage might take months, bridging finance can be arranged in days or weeks. Some loans complete in as little as 7 days.

What makes this possible?

Bridging lenders focus mainly on the property’s value and your exit strategy, rather than complex affordability assessments. They use streamlined processes and often have in-house legal teams to speed things up.

Plus, working with a broker who knows the market can make everything move even faster.

Let’s talk bridging loans!

Book your free consultation today and let’s discuss how we can help you achieve your property goals.

Who Can Use Bridging Finance?

Bridging loans suit many different borrowers, as long as you have property to use as security.

Let’s look at who most often uses these loans and what you’ll need to qualify.

Common Scenarios

Property investors often use bridging loans to buy at auction, where you need to complete within 28 days. For example, an investor might spot a bargain at auction but can’t arrange a mortgage that quickly – a bridging loan lets them secure the property and then refinance to a standard mortgage later.

Business owners use these loans to free up working capital. Say you own your business premises and need money to buy stock or fund expansion. A bridging loan lets you borrow against your property’s value without selling it.

Property developers find bridging finance useful when they need to act fast. You might find a property ripe for renovation but it’s not mortgageable in its current state. A bridging loan helps you buy and fix it up before either selling or refinancing.

High-net-worth individuals use bridging loans to create quick liquidity without disrupting their investment portfolios. If you’re asset-rich but cash-poor, you can borrow against one property to invest in another or fund other opportunities.

Eligibility Requirements

The main requirement is having a property with sufficient equity to secure the loan against.

This could be residential, commercial, or even land. The property’s value and condition will affect how much you can borrow.

You don’t need a perfect credit score – lenders focus more on your property and exit strategy.

However, you’ll need to clearly explain how you’ll repay the loan, whether through sale, refinancing, or another source of funds.

UK residents, foreign nationals, and companies can all apply. If you’re borrowing through a company, lenders might look at your experience in property or business, but this varies between lenders.

Read more: Understanding Bridging Loan Criteria & Eligibility

Comparing Funding Options

Banks offer various lending options, but each serves a different purpose.

Credit cards are convenient but don’t have very high credit limits.

Bank loans usually need lots of income and credit checks. While they might have lower interest rates, they’re not always suitable when you need quick access to funds, or large amounts.

Development finance works well for property projects, but it comes with staged drawdowns as your project progresses. Commercial mortgages are great for long-term property purchases but aren’t designed for short-term needs or quick completion.

Some people turn to private lending, where wealthy individuals lend their own money. While this can be quick, finding reliable private lenders isn’t easy unless you have good connections.

Bridging loans fill a specific gap in the market.

They’re faster than bank loans, more flexible than development finance, and more accessible than private lending.

They work particularly well when you:

  • Need money quickly
  • Want to borrow against property you own
  • Have a clear plan to repay within two years
  • Need the full loan amount upfront

Related: Are Property Development Finance and Bridging Loans the Same?

Working with a Broker

Finding the right bridging loan can be complex – there are hundreds of lenders out there, each with different lending criteria.

A good broker becomes your guide through this process, saving you time and money too.

A broker’s value comes from their market knowledge and close lender relationships. They know which lenders will suit your specific needs, whether you’re buying at auction, expanding your business, or releasing equity from your property.

This means you won’t waste time approaching lenders who aren’t right for you.

When you’re dealing with complex scenarios – like purchasing unusual properties or having multiple income streams – a broker’s experience proves invaluable. They’ve seen similar cases before and know which lenders will be most receptive.

Brokers can also help you get better terms.

They understand how to present your case to lenders and can often negotiate improved rates or more flexible conditions. Plus, they handle the paperwork and chase lenders on your behalf, making the whole process smoother.

Structured Solutions

Bridging loans offer more than just quick access to capital – they can be structured to suit your specific situation.

Unlike standard credit cards or overdrafts, these loans can be arranged in more tax-efficient ways and tailored to your exact requirements.

This means you can often find more advantageous terms and better repayment options than with traditional borrowing.

Next Steps

When you need fast access to money, bridging loans offer a practical alternative to credit cards and overdrafts.

By using your property as security, you can borrow larger amounts and often complete within days rather than months.

The key to success lies in preparation.

Make sure you have:

  • A clear purpose for the funds
  • A solid exit strategy
  • Property details ready
  • Legal documents to hand

While bridging loans can work brilliantly for short-term funding, they still need careful planning. Speaking with an experienced broker early in the process helps you understand your options and find the most suitable lenders for your situation.

If you’re considering bridging finance, get in touch to discuss your plans.

With access to over 250 lenders, we can help you find the right solution for loans from £150,000 upwards. Every case is different, and we’ll work with you to find the best way forward for your specific needs.

FAQ

With the right paperwork ready, bridging loans can complete in 5-7 days. Complex cases might take longer, but it’s still much faster than traditional bank lending.

Our minimum loan size is £150,000. There’s no standard upper limit – it depends on your property value and circumstances.

No. Lenders focus more on your property’s value and exit strategy than your credit score.

Read more: Do You Need a Good Credit Score for a Bridging Loan?

Yes. Because bridging loans are secured against property, your employment status matters less than with traditional lending.

In fact, non-status bridging loans let you borrow even if you have no income.

You’ll need enough equity in your property to cover the loan-to-value requirements, usually 25-35% of the property value.

Read more: Do You Need a Deposit for a Bridging Loan?

Yes, bridging loans can fund business expansion, stock purchase, or other commercial needs.

Related: How to Use Bridging Loans for Business Cash Flow

Yes, foreign nationals can access bridging finance if they have suitable UK property as security.

Regulated bridging applies to loans secured on your home, while unregulated bridges are for business or investment properties.

Yes, you’ll need a solicitor experienced in bridging finance. We can recommend suitable firms if needed.

Brokers can access more lenders, often get better rates, and help present your case in the best light to ensure quick approval.

Still have more questions?

Just give us a call on 020 3488 5706 to speak with an expert.
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