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Bridging Loans for Limited Companies: How They Work

Can a limited company get a bridging loan? Yes. How SPVs borrow, lender requirements, personal guarantees, newly formed companies, tax and costs.

25 June 2026
8 min read
1,816 words
Table of Contents

Yes, a limited company can get a bridging loan, and in the commercial market it is one of the most common ways bridging is arranged. Most commercial bridging sits in the unregulated space, where lenders are perfectly comfortable, and often more comfortable, lending to a company or a special purpose vehicle than to an individual.

If you run a trading company, or you have set up an SPV to hold a property, bridging is well within reach. Lenders in this market expect corporate borrowers. The structure raises a few extra requirements, personal guarantees, sometimes a debenture, clean company records, but none of them are obstacles for a prepared borrower.

This guide explains how bridging works for limited companies and SPVs: what lenders require, why a brand-new company is not a problem, how interest is treated for tax, the typical uses, the process and timeline, and what it costs. We arrange [commercial bridging](/services/commercial-bridging) for companies routinely, so this reflects how the deals actually run.

Limited companies and SPVs borrow bridging routinely

Commercial and unregulated bridging is, if anything, a corporate product. A large share of the loans in this market go to limited companies and special purpose vehicles rather than named individuals, because property investment and trading are so often run through a company for tax, liability and succession reasons.

A special purpose vehicle, or SPV, is simply a limited company set up to hold a specific property or project and do nothing else. Lenders like SPVs because they are clean and easy to understand: one company, one asset, no unrelated trading history or liabilities to unpick. Many bridging lenders actively prefer to lend to an SPV over a trading company for exactly that reason. Our guide to [SPV and limited company commercial mortgages](/knowledge-hub/spv-limited-company-commercial-mortgages) covers the structure in more depth.

Regulated versus unregulated bridging for companies

Commercial bridging to a limited company is almost always unregulated, and that is a large part of why the market is so accessible to companies. A bridging loan falls within the FCA's regulated perimeter only in narrow circumstances, chiefly where it is secured against a property that the borrower or a close family member occupies as their home. A loan to a company, secured against a commercial or investment property that nobody lives in, sits outside that perimeter.

That matters in two ways. First, unregulated lending moves faster and with lighter documentary requirements, which is why company bridging can complete in days rather than weeks. Second, we do not hold FCA authorisation, because the products we arrange are unregulated. Where a deal would stray into regulated territory, for instance a director personally occupying the residential part of a mixed-use building, we refer it to a regulated firm rather than arrange it ourselves. Our guide to [regulated versus unregulated bridging](/knowledge-hub/regulated-vs-unregulated-bridging) explains exactly where the line sits.

What lenders require from a limited company

Lending to a company is straightforward, but the security package is a little more involved than lending to an individual. Expect some combination of the following.

Personal guarantees from the directors

Almost every limited-company bridging loan comes with personal guarantees from the directors or shareholders. A personal guarantee makes the individuals personally liable for the debt if the company cannot repay. It aligns the borrower's interests with the lender's and gives the lender recourse beyond the company. This is standard, not a red flag, but take it seriously: a guarantee is a real personal commitment, and worth understanding before you sign.

Debentures and charges

The core security is a first legal charge over the property being financed. On a corporate loan the lender may also take a debenture, which is a charge over the company's assets more broadly. For a clean SPV that holds only the one property, a debenture adds little practical burden. For a trading company with other assets, it is worth understanding exactly what the debenture covers.

A clean SPV is preferred

Lenders want a company that is easy to underwrite. A clean SPV, correctly incorporated, with the right SIC code, up-to-date filings and clearly identified directors and beneficial owners, moves fastest. A company with a messy history, overdue filings or unexplained related-party dealings slows things down. If you are setting up an SPV for a deal, get the basics right from the start.

Newly incorporated SPVs are fine

A common worry is that a brand-new company with no trading history and no accounts cannot borrow. In bridging, that is not the case. Newly incorporated SPVs are financed all the time.

The reason is that bridging lenders underwrite the asset and the exit, not years of company accounts. When the borrower is a new SPV, the lender simply looks through the company to the people behind it. It underwrites the directors and shareholders, their experience, their assets and their track record, alongside the property and the exit strategy. A company incorporated last week, backed by experienced directors with a solid deal and a clear exit, is a perfectly fundable proposition. What matters is the strength of the people, the asset and the plan, not the age of the company.

How much a limited company can borrow

Loan-to-value for company bridging works the same way it does for any borrower: the lender advances a percentage of the property's value, and the percentage depends on the property and the exit. On standard commercial property, expect up to around 70% to 75% of value on a first charge. Specialist or harder-to-sell property sits lower, and where a further advance is needed a second charge may be possible behind an existing lender.

Company status does not change the loan-to-value, but it can change the security package around it. Because the directors typically give personal guarantees, and a debenture may sit over the company, lenders sometimes take more comfort from a well-run SPV than from a private individual holding the same asset. Loan sizes range from tens of thousands to many millions. What sets the ceiling is the value of the security and the strength of the exit, not the size or age of the company.

Interest treatment and corporation tax

For a limited company, the interest and costs of a bridging loan taken out for business or investment purposes are generally treated as a business expense, which can reduce the company's taxable profit. Arrangement fees and other finance costs are often deductible too, though the treatment can depend on how the loan and the property are accounted for.

This is general guidance, not tax advice. The rules around finance-cost deductibility, how they interact with the type of property and the purpose of the loan, and how they sit within your company's wider position, are matters for your accountant. Before you rely on any tax treatment, confirm it with a qualified adviser who knows your company. We focus on arranging the finance; your accountant should confirm the tax.

Typical uses for limited-company bridging

Companies use bridging for the same reasons individuals do, only at greater scale and frequency.

Auction purchases

Buy a commercial property at auction through a company and you have around 28 days to complete. Bridging is the standard way to hit that deadline, with the company refinancing onto a term mortgage afterwards.

Refurbishment

An SPV buying a tired property to refurbish and either sell or let uses bridging to fund the purchase and the works, then exits by sale or by refinancing onto a [commercial mortgage](/services/commercial-mortgages) once the property is improved.

Chain breaks on commercial deals

When a company is selling one property to fund the purchase of another and the timing does not line up, bridging covers the gap so the purchase completes without waiting for the sale.

VAT bridging

Buying a commercial property often triggers a VAT charge on the purchase price, which the company can usually reclaim but not immediately. VAT bridging funds that VAT amount for the few months until HMRC repays it, so the company does not have to find the cash from its own reserves.

The process and timeline

Bridging for a limited company runs through the same stages as any bridging loan, with company documents added.

  1. Terms: we present the deal to suitable lenders and agree indicative terms, usually within a couple of days.
  2. Company and ID checks: the lender verifies the company, its directors and its beneficial owners, and runs anti-money laundering checks.
  3. Valuation: a RICS valuation of the property confirms the value and the loan-to-value.
  4. Legals and security: solicitors prepare the charge, the debenture if required, and the personal guarantees.
  5. Completion: funds are released to the company.

Start to finish, a company bridging loan can complete in 5 to 15 working days when the paperwork is ready. The most common delay is incomplete company records or slow ID verification of directors and beneficial owners, so having those to hand speeds everything up.

Protecting the company and its directors

Bridging done well is safe. Bridging done carelessly puts both the company's asset and the directors' personal position at risk, because the personal guarantee reaches beyond the company. A few disciplines protect you.

Nail the exit before you borrow. A signed sale, an agreed refinance in principle, or a clear and evidenced sale plan should exist on day one, not be hoped for later. Build a buffer into the term, because refurbishments and refinances almost always take longer than planned. Read the personal guarantee carefully and understand whether it is capped and what triggers it, ideally with independent legal advice. Keep the company's filings and records clean, so a refinance lender has nothing to stumble over when the time comes to exit. And model the total cost, not just the monthly rate, so the deal still works even if it runs to the full term.

None of this is complicated, but skipping it is how good deals turn into expensive ones. A broker who arranges bridging every week will flag the weak points before you commit, which is exactly the point of using one.

What limited-company bridging costs

A limited company pays the same bridging rates as any other commercial borrower. In 2026 that means roughly 0.70% to 0.95% per month, which is about 8.5% to 11.0% a year, plus an arrangement fee of 1.5% to 2% of the loan and the usual valuation and legal costs. Being a company neither adds a premium nor earns a discount: the rate is driven by the loan-to-value, the property, the exit and the strength of the directors behind the company. Our guide to [commercial bridging loan rates and costs](/knowledge-hub/commercial-bridging-loan-rates-costs) sets out every component, and you can model a deal with our [calculators](/calculators). For an honest view on whether bridging suits your company's situation, [get in touch](/contact).

*Written by Matt Lenzie, Founder of Commercial Mortgages Broker. Ex-Lloyds Bank & Bank of Scotland.*

Frequently Asked Questions

Can a limited company get a bridging loan?

Yes. A limited company getting a bridging loan is one of the most common structures in the commercial bridging market, which is largely unregulated. Trading companies and special purpose vehicles both borrow routinely, and many lenders prefer lending to a clean SPV over an individual because it is simpler to underwrite. The company provides a first charge over the property, the directors usually give personal guarantees, and a debenture may be taken over the company's assets. Approval rests on the asset, the exit and the directors behind the company, not on the company's age.

Is it difficult to get a bridging loan?

Not especially. For a limited company with a suitable property and a clear exit, bridging can complete in 5 to 15 working days. Lenders underwrite the asset and the repayment plan rather than years of accounts, so even a new company can borrow. The requirements are a first charge over the property, personal guarantees from the directors, clean company records and verified identities for directors and beneficial owners. The harder part is not approval but making sure the exit is genuinely secure, because a vague exit is the main reason a responsible lender declines.

Do I need to give a personal guarantee for company bridging?

Almost always, yes. Personal guarantees from the directors or main shareholders are standard on limited-company bridging loans. The guarantee makes the individuals personally liable if the company cannot repay, which gives the lender recourse beyond the company and its property. It is not a sign the lender doubts you; it is routine in corporate lending. That said, a guarantee is a genuine personal commitment, so understand its scope, whether it is capped, and what would trigger it before you sign. Independent legal advice on the guarantee is sensible.

Can a newly formed SPV get a bridging loan?

Yes. A newly incorporated special purpose vehicle with no accounts and no trading history can get a bridging loan. Bridging lenders underwrite the property and the exit, then look through the company to the directors and shareholders behind it, assessing their experience, assets and track record. A company formed last week, backed by capable directors with a solid deal and a clear exit, is fundable. Getting the basics right helps: correct incorporation, the right SIC code, up-to-date filings and clearly identified beneficial owners all speed the process along.

Can I get a commercial mortgage with no deposit?

Rarely on the property alone. A no-deposit commercial mortgage is usually only possible by offering additional security, such as another property with sufficient equity, so the lender is covered across both. Without extra security, expect to provide 20% to 30% of the price. The same logic applies to a company borrower. For the full picture, see our guide to the [100% commercial mortgage](/knowledge-hub/100-percent-commercial-mortgage). Be wary of any offer promising 100% with no security, as it rarely turns out to be what it first appears.

Topics Covered

Limited Company BridgingSPV BridgingCommercial BridgingBridging FinanceCompany Finance
ML

Founder & Principal Broker

  • Ex-Lloyds Bank & Bank of Scotland
  • Former corporate finance partner
  • Board advisor to pension administrator/trustee with £3.9bn AUA
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