Planning a commercial bridging loan or short-term business finance? Our bridging loan checklist helps you prepare all the essential information and documents before submitting an enquiry.
This checklist ensures you have most information specialist brokers need to assess your commercial bridging finance options quickly and efficiently and reminds you to ask the broker so that YOU understand the risks involved. Using this checklist can save time, reduce delays and increase your chances of a smooth funding process.
Questions to ask:
☐ Confirm the loan is for business or commercial purposes only (not regulated).
☐ Make sure you understand this is an unregulated product with no FSCS/FOS protection.
☐ Gather basic information about the project and funding need.
Key Considerations
☐ Check you can meet a short repayment term (typically 3–18 months).
☐ Prepare a clear exit strategy (sale, refinance, business income, etc.).
☐ Confirm the property or asset used as security and understand the risk if you cannot repay.
☐ Review all potential costs, including interest, fees, extensions, and default charges.
☐ Understand that costs can be higher than long-term finance.
☐ Ensure you have contingency funds if your project faces delays.
Documentation You’ll Need
☐ Company information
☐ Asset/security details
☐ Plans, forecasts or project summary
☐ ID and financial information (anti-money-laundering documents, affordability and debt)
☐ Ownership documents for the property
Working With a Broker
☐ Confirm the broker will provide all advice and explain all risks.
☐ Ask the broker to outline all fees and terms in writing.
☐ Request clarity on timelines, valuation needs and legal processes.
☐ Ensure you understand the consequences if the exit strategy fails.
Before Proceeding
☐ Read all documentation provided by the broker.
☐ Make sure the facility meets your business needs.
☐ Consider taking independent legal advice.
✅ 2. Checklist for Property Developers (Unregulated Bridging for Projects & Refurbishment)
Project Preparation
☐ Have a detailed refurbishment or development plan
☐ Confirm timelines and budget, including contingency
☐ Ensure planning permission status is clear (granted, pending, permitted development)
Financial Assessment
☐ Understand bridging is short-term and requires fast repayment
☐ Prepare your exit strategy (sale, refinance, refinance onto development finance)
☐ Confirm all security assets and understand they may be at risk
☐ Budget for potential high costs if the project overruns
☐ Check valuation requirements and whether you can proceed with or without planning
Risk Evaluation
☐ Short Loan Terms: Repayment is due within months, not years. Make sure you can meet deadlines.
☐ Exit Strategy Reliability: Confirm that your planned exit (sale, refinance, business income) is realistic and achievable.
☐ Security at Risk: Bridging loans are normally secured against property or other assets. If repayment fails, these assets may be repossessed or sold.
☐ High Cost Potential: Costs may be higher than long-term borrowing. Fees can include interest, lender fees, valuation fees, legal costs and exit/extension fees.
☐ Default & Extension Charges: Understand how costs increase if the exit strategy fails or if the loan overruns.
☐ Valuation Downturn Risk: Market changes may reduce property value, affecting exit viability and loan-to-value.
☐ Project Delays: Development, refurbishment or rental delays may impact your ability to exit on time.
☐ Interest Roll-Up Impact: If interest is rolled up, the loan balance may grow faster than expected.
☐ Refinance Uncertainty: Future refinancing is not guaranteed — lending criteria may tighten or interest rates may rise.
☐ Legal & Broker Fees: Ensure you understand all costs payable upfront and on completion.
☐ No FCA or FOS Protection: As unregulated products, you are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service.
☐ Independent Advice: Consider obtaining independent legal, financial, or tax advice before proceeding.
Broker Interaction
☐ Provide accurate project details
☐ Request written illustration of costs
☐ Ensure you fully understand the terms
☐ Clarify legal steps and timelines
☐ Agree communication expectations
Before Signing
☐ Ensure full transparency of fees (legal, valuation, lender, broker)
☐ Understand consequences of delays
☐ Consider independent legal or financial advice
✅ 3. Checklist for Property Investors (Buy-to-Let, Auction, and Commercial Purchase)
Initial Position
☐ Verify the loan is for investment/business use only
☐ Confirm this is an unregulated product
☐ Have proof of funds for deposit
☐ Research the asset you’re purchasing
Property & Market Considerations
☐ Check the condition of the property
☐ Assess whether refurbishment is required
☐ Review rental demand or resale values
☐ Confirm your ability to complete within short timelines (e.g., auctions)
Finance Considerations
☐ Understand the short-term nature of the loan
☐ Have a clear exit route (sale, BTL mortgage, refinance to commercial mortgage)
☐ Be aware of security risks — your property may be repossessed if you cannot repay
☐ Review costs: interest, fees, VAT implications, extensions
☐ Check if the loan allows for heavy/light refurbishments
☐ Factor in valuation and legal timescales
Broker Engagement
☐ Confirm the broker is responsible for all advice
☐ Ask for a breakdown of fees
☐ Confirm timescales — especially with auctions if possible
☐ Understand any lender criteria or restrictions
Before Completion
☐ Read all legal documents
☐ Ensure the exit strategy is realistic
☐ Consider professional legal or tax advice
☐ Have a contingency plan if the market changes or works take longer