Bridging Loans are a source of fast cash used to take care of urgent financial needs. It is taken out to cover urgent financial requirements that cannot be ignored. These loans are suitable in situations where you do not have enough time to arrange for a long-term loan. It is gradually being considered as a short-term finance option as it is easily available. There is no need to prove your creditworthiness in order to obtain this loan. Although, some form of security needs to be provided, and that is the basis on which your loan is sanctioned. In other words, the value of the security that you provide will decide the amount you are able to borrow.
These can be taken to meet with immediate funding requirements. They can come with high interest rates as the lender has to bear a high risk. Other costs and fees are also required to be paid for obtaining the loan. Generally the fees involved include Valuation fee for valuation of the property kept as security, Legal fees and administration fees. Some lenders also provide equity participation. There are hardly any formalities required for obtaining a bridging loan; therefore you can be assured of getting your loan disbursal amount within days.
Both individuals and businesses use this type of loan for short-term finance needs. We ourselves have been in the situation of selling our old property to acquire a new one. With a bridging loan, you don't have to miss out on the property you have wanted. Without even selling your old home, you can buy your new property by taking out a bridging loan. Just pledge a property with the lender and you will be provided with the money to buy your new house. The amount of loan you get is directly proportional to the value of your collateral.
If you are considering construction or renovation of a property but do not have a long-term loan to take care of your financial needs, then this loan is the best option. Take the bridging loan for the initial cash outflows and as soon as your long-term loan is disbursed, you may pay off the bridging loan. Hence, a bridging loan is of great help in situations where you don't want to delay your plans. It is also of great use to businesses to meet their financial needs. They may make use of this loan for introducing small amount of cash in the daily working capital cycle so that they do not run out of cash or for carrying on regular functioning of a company before finding a new investor.
The bridging loans can be availed for any amount depending on one's requirement. Though different lenders may be offering different rates, the bridging loan may very well be taken for a small amount for routine needs scaling up to huge amounts of capital expenditure. Hence there is great flexibility in the loan amounts. This fast and easy option is actually of great help to borrowers who don't have a very good financial standing.
Positive finance is one of the UK's leading bridging loans specialists for personal and commercial uses. We are principal lenders, which means with us you benefit from NO BROKER FEES and getting an immediate decision on a bridging loan is fast, easy and straightforward. Also, because our lending solutions are tailored to suit you and we are happy to consider any credit history, there's really no need to go anywhere else!
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