Asset Based Bridging Loans

What is asset based bridging?

Asset based bridging loans are short term loans of up to 12 months that don’t use commercial or residential properties as security. Instead, they use other assets such as:

• Factory or office equipment
• Plant machinery
• Vehicles – lorries, vans, company cars, etc
• High value specialist tools, equipment or machinery

The facilities that we arrange allow the borrower to maintain use of the assets being used as security.

Facilities available:

• From £25,000 to £2 million
• Loan terms up to 12 months
• Plans for adverse credit, late payments and existing arrears
• Specialist plans for cash flow making use of outstanding invoices, pending business deals yet to be completed, VAT and other Tax credit repayments.

Similarities of a short term asset based loan with pawnbroking

Similar to bridging loans, pawn broking can also be used to quickly raise funds that are required for a short period of time. The principle of pawn broking has been made use of by people for at least two thousand years, particularly back in Roman times.

Methods used to pawn broke and the facilities available to customers are still evolving today.

A typical bridging loan can be used to raise finance quickly without the need for in depth credit checks and income information and confirmation. The funds raised through a bridging loan is based, and secured on, the equity of a property.

Likewise pawn broking can raise finance without credit or income checks, the funds being borrowed are purely based on the value of the item or items that are being pawned.

Items that are used as security are known as the pawn, and are held by the pawn broker until the loan, together with any interest charges and fees, have been repaid.

When borrowing money from a pawn broker there will be an agreed period of time in which the loan will need to be repaid. If this period is exceeded the pawn can be sold in order to repay the debt.

Being quick to arrange, useful for short term borrowing, and being able to add interest and other charges to the loan facility is all very similar to more traditional bridging loans.

Today pawn broking has evolved from pawn broking items for £100 in a high street pawn brokers shop, to asset based loans which can be arranged online and are available for amounts up to £2 million.

Items such as prestigious, classic or vintage cars, valuable watches and jewellery, boats and works of art, can all be used as security for an asset based bridging loan.

Any item used as security is safely and securely stored in addition to being well insured. Once the asset loan has been repaid the security item is safely returned. This type of borrowing is popular because it is very quick to arrange and can utilise the value of high value items that may have otherwise had to be reluctantly sold, possibly below value, so that urgently required funds can be raised.