A bridging loan uses the equity in property as security for the loan. Unlike other secured loans and mortgages, a bridging loan can be set up quickly and make use of property that would normally be considered unsuitable security for many lenders.
- Typically used by businesses and individuals who require fast short term finance and use commercial property as their security;
- Many facilities do not have exit or redemption fees;
- Interest charges can be added into the bridging loan for the full term or a set number of months, and paid when the loan is redeemed;
- Income proof and affordability calculations are not a limiting factor if interest is added to the facility.
- Can be used to purchase property that is unsuitable security for traditional lenders – ie in a bad state of repair, because it will be converted, demolished or rebuilt etc;
- Can be used to stop repossession – you may need to clear arrears or completely repay a lender before a property is repossessed;
- Fulfill a large order – a business may need fast short term funding in order to buy materials / pay staff to accept and complete an order;
- Pay urgent tax demands – or replace funds when an overdraft or other facility is unexpectedly called in;
- Provide a cash injection to the business – to pay bills whilst waiting for invoices to be paid;
- To purchase a bargain – a property or other item may become available for purchase cheap if the sale can be completed quickly.
Please get in touch to learn how we can help you.