What is Bridging Finance?
ABF Bridging finance is a short term loan, fully secured against UK property, costed to meet the demand for quicker, more flexible funding than mainstream bank finance.
Who uses ABF bridging finance, and what for?
Professional property investors with a business plan, suitable security and a need for short term capital.
Who controls Accelerated Bridging Finance (ABF)?
A group of experienced individuals with many years spent in property, fundraising and financial services.
How long has ABF been in business?
ABF has been established since 2006.
How does Bridging Finance work?
ABF lends money to a business/individual to finance a property investment or project, and will charge an interest rate to the business for the service.
Can any business or individual apply to Accelerated Bridging Finance for a short term loan?
Any business or individual can come to ABF for a short term bridging loan, but not every application will be accepted. We take each case on its merits, we look at all aspects of the business or project, and make a decision based on years of experience in business, property and construction investment.
How will ABF invest my money?
Your money will be allocated to and secured against acceptable property transactions. A legal charge will be registered by an independent lawyer.
Is ABF regulated by the FCA?
ABF is not regulated by the FCA to give financial advice, nor for any other form of regulated activity. If you do require advice please see your own Independent Financial Advisor (IFA) or ask for a recommendation.
What return can I expect on my money?
Depending on the amount invested, you can expect a return of between 4% and 10% per annum.
What are the costs involved?
There are no initial costs when investing; the rates published by ABF are the rates you receive.
How long do I need to leave my money with ABF?
We request a minimum period of investing, which is 12 months.
If I need to access my cash quickly is there a penalty? Do I need to give any notice?
If you agree to invest for a specific period and keep to this, then no penalty will apply. In order to protect ABF, early surrender penalties will apply if you need to withdraw your capital early.
Realisation/Termination of Loan/Investment
The ABF Business Loan Agreement will incorporate a term for the agreed loan into the Company. Before the expiry of such term, within a suitable notice period, the Company will refer to the lender/investor for instruction regarding the potential realisation of their investment and with any opportunities for extension or addition to the current agreement. The subsequent instructions of the lender/investor shall be taken by the company as final.
The Company will, by whatever means, meet any requests for early withdrawal, subject to the correct notices being served to do so and in accordance with the Notice Period stipulated as a condition in the ABF Business Loan Agreement. The Company’s assurances of the availability of such an early withdrawal, should it be necessary, are dealt with in the section headed ‘Liquidity’, above. A charge of £500 + vat will be deducted from the value of any funds returned before the end of the ‘Initial Loan Term’ in addition to any ‘Early Settlement Interest Adjustment’ as quoted in Appendix A.**
You will need to give a minimum of 3 months’ notice prior to withdrawing.
How long does the process of investment take?
It will typically take 14 days to complete the administration, set up your investment and register the work done by the lawyer in producing the loan note and registering the security
How do I get paid the interest?
The interest payment is wholly dependent on whether you have invested for income or capital growth.
For Income accounts, payments will be paid monthly into an account of your choosing.
For Capital Growth accounts the interest will remain within ABF until the end of your chosen term.
How secure is my investment?
Your Investment is secured against UK property up to a maximum of 80% loan to value. This means property values would have to fall by more than 20% for you to be affected.
How Safe is the Investment?
Safety in Equity
We plan every transaction to ensure sufficient equity is left as security to cover the loan amount, arrears, foreseeable falls in property values and legal fees required to collect the loan.
Safety in Security
First Charged Property Security is what provides our clients with the greatest safety when lending money. Our solicitor secures the Company’s money and your investment by registering a legal charge over UK property.
Safety in Repayments
ABF’s planning ensures that clearly defined exits to our bridging loans are in place. Exits include but are not limited to property sales, mortgages and property refinancing.
An investment through ABF involves an investment in an interest rate receivable, from loans secured against UK property. The value of the property used as security can go down as well as up. Past returns are not necessarily a guide to future returns. The returns quoted are net of fees but are before the deduction of taxation that you are personally responsible for.
ABF loan note investment is not an investment regulated by the Financial Conduct Authority. Investors in ABF loan notes will not have the protection of the Financial Services Compensation Scheme or the support of the Financial Ombudsman Service.
I’m nervous about investing my cash with a company I have not dealt with before. Can I speak to someone who has already invested with ABF?
Yes! We can arrange for you to speak to another ABF investor.
I have friends and family that may be interested in investing as well. Is there an incentive for me to recommend others?
It is possible to introduce other people that can benefit directly from the ABF investment opportunity. Incentives can be discussed with an ABF director on a case by case basis.