"As the ability for the borrower to obtain a term loan was impeded due to the CQC rating, a bridging loan was the only option for them to raise the funds needed to proceed with the acquisition"
- Daniel Jones - Norton Broker Services
A care home operator has secured a £600k commercial bridging finance facility through Norton Broker Services and Black & White Bridging, allowing it to acquire a second property and move ahead with expansion plans despite delays in securing traditional funding.
The deal highlights how commercial bridging finance continues to support operators facing regulatory timing issues, particularly where mainstream lenders are unable to proceed. In this case, the borrower had identified a suitable acquisition to increase capacity, but a lower-than-required Care Quality Commission (CQC) rating prevented access to standard commercial mortgage funding.
The existing care home held a CQC rating of “Requires Improvement”, below the “Good” rating typically needed by high street lenders. Although operational improvements had already been completed, the reinspection process had not yet been finalised, creating a timing gap that threatened the acquisition.
To move the transaction forward, a commercial bridging finance structure was arranged to provide 100% of the required funding, secured against both the existing care home and the new property. This approach allowed the borrower to proceed without waiting for the updated CQC assessment.
The use of commercial bridging finance enabled immediate completion of the purchase, supporting a strategy to scale operations and increase capacity.
Once the CQC rating is updated, the borrower plans to refinance onto a longer-term commercial mortgage.
Commercial bridging finance supports urgent care home acquisition
The transaction is expected to have a significant impact on the business, effectively doubling income potential while supporting additional recruitment and improving overall profitability.
“This case highlights how bridging finance can provide practical solutions to businesses and perfectly demonstrates how it can help SMEs grow and seize opportunities, noted Mike Underwood, relationship director at Black & White Bridging. "The team at Norton presented the case perfectly to enable the funding to proceed quickly.”
Daniel Jones, bridging and commercial sales manager at Norton Broker Services (pictured), added, “As the ability for the borrower to obtain a term loan was impeded due to the CQC rating, a bridging loan was the only option for them to raise the funds needed to proceed with the acquisition."
“Mike and the team at Black & White Bridging quickly understood how to structure the deal and funded quickly for the acquisition to take place.”
The case reflects how commercial bridging finance is being used more frequently in healthcare-related property transactions, particularly where regulatory processes can delay access to traditional lending.
If you’re exploring bridging or development finance, get in touch and we can connect you with the right lender.
