Key points –

1. Alternative Bridging Corporation has relaunched its Term Loan, now featuring no Early Repayment Charges (ERCs), offering greater flexibility for borrowers.
2. The loan, available for terms between three to five years, allows a maximum Loan to Value (LTV) of 70% and loans up to £4 million, with a bespoke approach to each case.
3. This revamped loan is especially beneficial for the property industry and business community, offering tailored solutions for cash flow and the option for interest to be accrued, particularly aiding business start-ups.

Alternative Bridging Corporation has made relaunched its Term Loan. This isn’t just any ordinary update; the loan now comes with a new feature – no Early Repayment Charges (ERCs).

Key Features of the New Term Loan

• Duration and Limits: The Alternative Term Loan is available for periods ranging from three to five years. It offers a substantial borrowing limit, with a maximum Loan to Value (LTV) ratio of 70% and loans up to £4 million.
• Flexibility Without Extra Cost: The highlight of this revamped product is the absence of ERCs. This means borrowers can repay their loans early without any additional charges, granting them unprecedented flexibility. This is particularly useful if they wish to refinance onto a longer-term plan with a more attractive rate.
• Customised Lending Solutions: Recognising that every borrower’s situation is unique, Alternative Bridging Corporation promises a bespoke approach to each case. They’re even prepared to offer individualised debt servicing ratio coverage where it’s suitable.

Tailored Cash-Flow Solutions

An intriguing aspect of this loan is its adaptability in structuring payments. For businesses, especially start-ups, where property income isn’t stable yet, this loan allows for special arrangements. Interest can be accrued, aligning with the business’s cash flow, easing the financial pressure during initial stages.

Jonathan Rubins, a director at Alternative Bridging Corporation, shares his insights, acknowledging the current uncertainties in the interest rate landscape. He notes that while some borrowers are leaning towards bridging loans to wait and see how rates evolve, the Term Loan from Alternative Bridging, especially without ERCs, offers a sensible middle ground. It bridges the gap between short-term bridging and long-term loans.

Rubins emphasises the significance of removing ERCs, underlining the borrower’s benefit of avoiding hefty fees if they decide to switch to a different loan product in a potentially fluctuating interest rate environment.