Applying for a Bridging Loan

There are many alternative names for the bridging loan. They’ve been called “swing loans”, “gap financing”, “interim financing”, and “bridging loans”. But whatever name you give them, they all serve exactly the same purpose and that is getting money to people who require it quickly. They’re trusted for a variety of purposes within businesses and for personal use. In these instances and many others, these refinancing options can be your greatest allies.

Bridging loans are only a short term lending option they normally last for up to a year, some can go onto two years but that is very rare. The main principle of these loans is to lend the money for a short period of time and once this time is up the borrower should have secured more permanent finances.

When someone is looking into a bridging loan they will find that rentals will be used as collateral against your loan, because of the risks that the lender has with bridging loans there are higher rates and extra fees or charges that can be added to the transaction. These loans are great for purchasing property, taking advantage of a short-term deal or keeping cash flow running.

Whether you’re an individual or business considering applying for a bridging loan, be sure that you compare rates and find the top one. As these loans are shedding their bad reputation and are growing in popularity, the terms are getting more and more flexible as well as more competitive. Many of the biggest business deals and property transactions have used bridge financing to secure the needed funds, so you shouldn’t hesitate to look into them. You can find extra costs, however the benefits can often far outweigh them.

This entry was posted on Tuesday, September 11th, 2012 at 4:05 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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