Despite the financial challenges they face, many small businesses are set to expand.
Small businesses are going through a tough financial time with commercial rents and energy bills rising plus the costs of paying the national living wage. This has not stopped many businesses feeling positive about the future. A recent survey by online marketplace eBay, found that two-thirds of British small businesses are planning to expand in the next 12 months.
Many high street banks are hesitant to lend money to fund small business expansion, but a growing number of non-high street lenders are willing to provide short term or bridging loans to fund business expansion. If an expansion opportunity is spotted, but a business has temporary cash flow problem, then a bridging loan can be the answer.
Bridging loans are particularly useful for property developers who buy properties at an auction then renovate them for sale. A bridging loan is ideal for this as the expected value of the property when developed can be used to secure the loan.
Many businesses are attracted by the speed at which bridging loans can be arranged. Commercial bridging loans can often be a way to buy stock that is offered at a low price, or bought through an auction. If there is a high demand for the product, then the stock can be sold quickly and the bridging loan paid off.
Short-term finance lenders are helping small businesses expand and contribute to the success of the British economy.