Investing in commercial property in an effort to revitalise a local high street is a commendable endeavour. But an owner-occupied business such as a restaurant can be hard to get off the ground. As such, our Bridge Fusion product could be of particular use here.
Fusion allows for a longer term to be taken on lower interest rates, potentially saving thousands of pounds in interest. This is crucial for an entrepreneur who’s trying to make a new business venture a success.
Our Fusion loans have terms of 24 months, but this may not be enough to allow a new restaurant to make a name for itself in a local market. But, perhaps its fortunes could be on the verge of turning.
Say the underlying borrower is on the verge of hitting a new milestone. Maybe the restaurant in question is about to receive a raving review in a respected dining publication.
But the broker may be concerned that it’s still not a great time to refinance as they approach the end of the initial term. To help, we (at our discretion) can offer a 12-month extension on the loan. This would allow the borrower more time to grow their business and reap the rewards of the review.
Also, it may allow the borrower to secure better terms down the line, if their business/investment ends up in a healthier position. Furthermore, the Fusion loan would allow for flexible overpayments. After six months, up to 25% overpayment is allowed ERC free, meaning any surplus funds from a strong business performance could be applied directly to the loan.
This absence of an ERC would give the underlying borrower the freedom to pursue long-term refinancing options for the exit strategy without facing penalties.
Further reading:
- Featured Product: Bridge Fusion Loan
- Explainer Video: Bridge Fusion
- Tool: Bridge Fusion Calculator
- Guide: The Complete Bridging Loan Guide
- Blog: Commercial property tax guide – what taxes do investors need to pay and what are the allowances?
- Blog: How to invest in commercial property?
