It’s not unusual for property professionals of all types to find themselves in emergency situations requiring a quick financial fix. Likewise, when a promising opportunity appears suddenly on the market, it can be extremely useful to have a short-term funding option at hand to enable you to make the most of it.

But do you know your bridging loan from your second charge mortgage? Can development finance cover a sudden shortfall? And what could possibly go wrong if you’re relying on a ‘common-or-garden’ business overdraft? Here, we’ll go over the pros and cons of the various short-term finance options open to property developers and investors. At the end of it, you should have a clearer idea of the type of funding that will best meet your needs.

When to seek short-term finance

Construction and refurbishment snags are a fact of life; third parties can let you down, and delays in releasing cash from elsewhere can put your immediate project plans at risk.

Here are some common scenarios where short-term finance is required:

• Bridging: frequently, the purchase of one property is dependent on the release of capital from another. Where the purchase needs to proceed shortly before the linked sale is finalised, temporary finance may be required to bridge the gap.
• To fund construction/renovation costs: institutional lenders may require that the property must meet a certain level of spec before longer-term finance can be agreed. A temporary measure may be required to fund the work necessary to meet these conditions.
• Unforeseen costs and liabilities: a combination of snags may mean that your previously allocated budget may be insufficient to get the project over the line. You may need to borrow an additional injection of cash, to be repaid upon sale of the property, or once it starts to generate rental income.

When these types of cash issues arise, the quicker you can resolve them, the less chance there is of any further delays or complications. With this in mind, here are the options you might want to consider...

H2 Lorem ipsum dolor sit amet

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Etiam facilisis aliquam arcu, at lacinia ante ultricies vitae. Sed in magna tincidunt, fringilla sem ut, rutrum ante. Morbi ac ornare ligula. Morbi accumsan quis odio sed laoreet.

H3 Fusce congue mi sed malesuada pellentesque. Maecenas neque quam, mattis et pulvinar a, laoreet non augue.

Mauris consectetur felis vel nibh efficitur, id feugiat sem commodo. Suspendisse potenti. Nam sodales aliquet turpis, non pharetra tortor porttitor eu.

Sed eleifend imperdiet accumsan. Nam ut massa urna. Suspendisse venenatis metus sit amet pretium pulvinar. Aliquam ullamcorper nisl odio, id elementum nunc rutrum a. Nullam faucibus, lectus vitae suscipit placerat, dolor dolor interdum lorem, et vestibulum sapien tortor nec magna. Aliquam consequat ante turpis, pellentesque convallis ligula varius nec.

H2 Lorem ipsum dolor sit amet

• Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nulla vitae elementum augue. Ut quis libero non orci hendrerit aliquam ac ut ipsum.
• Lorem ipsum dolor sit amet, consectetur adipiscing elit.
• Sed scelerisque augue non enim rutrum, non tempus magna tristique.
• Curabitur et turpis vel lacus tempor dapibus eu at leo.
• Aliquam eu lacus in nisi imperdiet convallis.
• Mauris non ipsum non enim consequat vehicula.
• Vivamus vitae elit eu odio aliquam ultrices.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Maecenas et blandit quam. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Name Job title

H4 Fusce congue mi sed malesuada pellentesque. Maecenas neque quam, mattis et pulvinar a, laoreet non augue.

Mauris consectetur felis vel nibh efficitur, id feugiat sem commodo. Suspendisse potenti. Nam sodales aliquet turpis, non pharetra tortor porttitor eu.

Sed eleifend imperdiet accumsan. Nam ut massa urna. Suspendisse venenatis metus sit amet pretium pulvinar. Aliquam ullamcorper nisl odio, id elementum nunc rutrum a. Nullam faucibus, lectus vitae suscipit placerat, dolor dolor interdum lorem, et vestibulum sapien tortor nec magna. Aliquam consequat ante turpis, pellentesque convallis ligula varius nec.

1. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
2. Sed scelerisque augue non enim rutrum, non tempus magna tristique.
3. Proin auctor ipsum eleifend tellus elementum vestibulum in et leo.
4. Pellentesque pretium purus non massa imperdiet, in mollis dui tristique.
1. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
2. Sed scelerisque augue non enim rutrum, non tempus magna tristique.
3. Proin auctor ipsum eleifend tellus elementum vestibulum in et leo.
4. Pellentesque pretium purus non massa imperdiet, in mollis dui tristique.