Looking for a short-term injection of capital for a residential project or your business?
Bridging loans can meet the gap in funds to make these projects possible. Short-term loans that act as a stop gap while you are waiting for finances to be realised these are, as the name suggests, loans to ‘bridge’ a gap in finance.
They should not be seen as long-term solutions and it is wise to always have an exit strategy and time frame in place to make sure that the loans work as intended.
Here at Mortgage and Finance Arena we can help you look at your short-term funding options when you need the funds now so you don’t miss out on any opportunities.
What is Bridging Finance?
Bridging finance also known as bridging loans, still cause confusion. Below is a quick guide to how they work.
Bridging finance was once a specialist product, it is now being more widely used in investments. Bridging loans can be used to benefit property transactions and businesses.
They are popular for a number of purposes including commercial and residential property transactions, auction purchases and businesses are all taking out the funding option when they require a quick injection of cash.
Bridging finance can be organised very quickly, usually within 24-48 hours where as a general finance can take weeks to organise.
What can Bridging Finance be used for?
Can use the short-term finance for a number of options including:
- Raising Capital – Bridging loans can be secured against land and property so that funds can be raised in a short time frame e.g. to buy stock.
- Tax Liabilities – Bridging finance can be used if a VAT or tax demand is made, and the amount can’t be accessed within the required time frame.
- Business Obligations – Borrowers looking for short-term funding to meet their obligations and payments or to overcome financial difficulties.
Homeowners, Investors and Developers:
Bridging loans can be used for multiple purposes to help with a quick cash injection or short term funding when other more permanent finance options may not be available such as; barn conversions, auction purchases, building a home, repairing a broken chain and many more.
Open & Closed Bridging Finance
There are two types of bridging finance.
- Closed; this type of bridging finance has a fixed date in place for the loan to be paid off in full or moved to a more permanent type of finance.
- Open; this type of bridging finance is given with out a fixed date, but instead you are given ‘up to’ a certain date.
Our experts will work with you to decide which would suit your needs the best.
We’ll manage the process for you
For the majority of individuals and businesses, bridging finance is used at times where there is a temporary cash flow issue or a tight deadline and a quick, short-term loan is needed to provide the solution.
We have access to multiple lenders, so we are able to look at all of the options for your project and show you the best deals.
Our team of experts will work with the lenders and you to get your funding in place quickly and smoothly.
Contact us today and our experts can help you to choose the right kind of finance.