Our Specialist Finance Product, Alternative Overdraft Takes the Crown!

Posted by Alternative Bridging Corporation on 5th January 2023 -

In times of economic challenge, cash flow becomes even more crucial for businesses and this holds true in the current environment. At Alternative Bridging, we are receiving a large number of enquiries from brokers and commercial clients in need of specialist bridging finance.

Enquiries show that many business owners are looking to expand, seeing opportunities of various kinds - they may want finance to fund a new start-up venture, or for investment purposes to improve the growth of the company. This is good news as lenders like Alternative Bridging have an appetite to lend and can be flexible in structuring specialist bridging finance solutions for clients to enhance their cash flow.

The Alternative Overdraft is a good example of a specialist finance product that helps businesses finance their objectives. It offers a flexible drawdown facility that provides liquidity whenever a borrower needs it. The facility can be drawn upon and repaid time and time again and provides the perfect overdraft for real estate, property auctions, site acquisitions or to fund work-in-progress. It negates the need for expensive setting-up charges each time a loan is needed and can be secured by a first or second charge on a residential or commercial property.

The Alternative Overdraft is available for two years and then subject to review which can be secured by first charge over commercial or residential and second charge over residential properties. Interest is charged on the balance outstanding and can be serviced or accrued. Loans are available from £250,000 to £3m and enable under-utilised assets to play a prominent role in the investor’s finance arrangements.

To provide a timely example, we were approached by a broker whose client is an importer of luxury goods. They wanted to buy stock to meet increased demand over the Christmas period. We looked over the case and quickly recognised that the company was strong, its application was sound and they needed a specialist bridging finance solution. They secured an Alternative Overdraft on unencumbered buy-to-let property, drawing down funds over several stages to buy stock from suppliers. The stock was sold at a profit and the loan was repaid.

Even in this challenging economy, there are plenty of healthy businesses looking to the future with positivity, and the specialist lending sector has the appetite, flexibility and expertise to provide the financial solutions they require.