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What do you need to know about short-term bridge loans?

    Bridge Direct     0

Short-term bridge loans are designed to be exactly as they sound, a short-term funding solution, designed to ‘bridge the gap’ until a more permanent solution comes along. The duration of a bridge loans usually ranges between 6-12 months, however, these are not set in stone.

Many property developers regularly use bridge loans to help finance the purchase of a property while the sale of an existing one is still pending. They can then begin any remedial works on the new property without having to worry about having to sell the existing property and hold off works.

With property purchasing, especially in chains, completion dates rarely go as expected. So by using a bridging loan as an advance to fill this financial gap, properties can be purchased, and turned around for sale or rent much more quickly, saving money and time.

As bridging loans are secured loans, there are no set criteria or credit checks involved.  As a secured loan the funds will be secured against assets already held by the borrower in an existing property or asset. This means as long as you hold enough capital in the asset being used as security, then you may be eligible for a loan.

Business Bridging Finance Options

Short-term bridge loans are usually available for up to about 85% of the property or assets value.  The interest on this these types of loan will often be slightly higher than that of a traditional loan or mortgage. However, these charges can be more than negated when you take into consideration the savings, in both time and money, which are made from being able to begin work on the property sooner.

It is this instant finance that banks just cannot offer. In the wake of the recent financial crisis, banks have become increasingly wary about who, when and where they lend their money. In order to protect their return there has been a drastic increase in set criteria and credit checks associated with both loans and mortgages. They become increasingly wary or may even reject your application straight away if you have had a history of bad or adverse credit.

A short-term bridge loan may be the answer to a financial dilemma when stuck in a chain, looking to purchase a property quickly or for any business application. As a bridge loan can be used against any business application, it is becoming increasingly common for these types of loans to be taken out to help fund;

  • Large tax bills
  • Large supplier invoices
  • Staff wages

Bridge Direct bridging loan solutions

So, whether you have discovered the ideal investment property and don’t wish it to get away, or need to release some capital quickly to pay your staff, taking out a short-term Bridge Loan could be the best option for you.

For an immediate decision on all Bridge Loan applications, contact with Bridge Direct today. With over 30 years of expertise in the financial markets and Bridge Loans sector, they will find the best deal for you and your situation.

When you call Bridge Direct you can be guaranteed you will be speaking with one of our decision makers, and not a broker. Bridge Direct have cut out the middle man!

You can call Bridge Direct and speak to one of our decision makers on 020 3126 4969, alternatively complete our online application form at www.bridge-direct.com.


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