Capital raising bridging loan
A capital-raising bridge unlocks property equity for a defined short-term need such as business cashflow, a tax bill or an opportunity purchase. Lenders still require a timed exit, not a hope that one will appear.
The advance is against surplus equity after existing charges, interest and fees. Equity is not the same as borrowing capacity. First-charge and second-charge structures are both used; a second charge leaves the current mortgage in place only if both lenders agree and priority is documented.
Typical uses
Business owners sometimes bridge a gap between invoices, a contract receipt or stock. Tax bills are occasionally funded this way — the tax deadline does not pause, and interest on the bridge adds to the amount to repay. Opportunity purchases overlap with auction finance.
Documenting the exit
Sale, refinance, a contracted business receipt or sale of another asset can work if evidenced. A contract is not cleared funds. Price growth is a weak plan. See acceptable exits.
Ask for gross advance, deductions, net funds, monthly obligations, total repayment and the cost of an extension. Related: commercial bridging and limited company.
FAQs
Can I raise capital without repaying my mortgage?
Sometimes via a second charge if both lenders agree. Combined LTV still applies.
Can I use a bridge to pay a tax bill?
Some lenders will consider it. Take tax advice on the liability itself.
Is cashflow enough?
It can support the story; lenders still want evidence of the exit.
What if the exit is late?
Interest continues. Extensions are discretionary.
Next step
Use the calculator for an indicative starting point, then enquire if you want an introduction.