Bridge loans have always generally been associated with property purchases, however, many businesses also benefit from using bridge loans for a wide variety of business applications.
In today’s blog post we will discuss what bridge loans are and how to reap their benefits. We will also look at why they have become solely associated with property purchases and how they can be applied to other aspects of business.
On the surface both open bridge loans and closed bridge loans appear to be the same. There is also very little information out there explaining the differences and where each are best applied. Whilst both are very similar, the little nuances between them would affect which bridge loan is the best fit for your situation.
During the mid-2000 when the financial crisis hit, we saw the banks immediately reduce the amount of money they would lend and to whom they would lend it to. This led to a significant fall in the number of mortgages being arranged.
Utilizing Instant Bridge Loans to fill a temporary gap in funding or release equity is a quick and easy way to fund last minute purchases, products and services. Whilst bridge loans are more commonly associated with property purchases, business owners throughout the UK are often turning to short term bridge loans to fund any business application. These applications can include;
Bridging loans are becoming more and more popular and this rise is set to continue.
Based on the recent information of the Association of Short Term Lenders, in the first quarter of 2017 value applications for bridge loans has increased by 13.9% when compared with the first quarter of 2016.
There are many reason and factors as to how you can get a bad credit score and having this can have major implications when you try to take out a bank loan or mortgage. Due to the recent economic crisis we have seen banks becoming more wary about who and where they lend their money. Additional credit checks, due diligence and increased set criteria mean if you have bad or adverse credit you are unlikely to be able to secure one of these products.
Sometimes you dream property may come an inopportune time, and you may not be in the position to sell your existing property. This could be for multiple reasons ranging from not wanting to sell the existing property at all to the current property being undervalued or stuck in a sale chain.