A Bridging Loan can help you tide over a capital gap with ease. But is bridging the gap the only advantage of Bridging Finance packages?
What are the risks involved in getting into a Bridging Loan deal?
Bridging Loan Benefits
- The first and the foremost bridging loan benefit is that it is much more easily accessible than other mortgages.
- A bridging loan can be arranged within days, allowing the borrower to readily finance their project – especially in between the sale and purchase of a property.
- A bridging finance package is more flexible than any other commercial mortgage.
- Many lenders offer unique ‘interest-only’ bridging loans. These allow you to pay the interest on a monthly basis, while the principal loan amount is merged as a part of the existing mortgage. This is immensely beneficial for businesses with limited cashflow.
- For businesses not registered in the UK, or for immigrants who don’t have a credit history, getting a property mortgage is a nearly impossible task. Such entities can, however, get a bridging loan with adequate collateral.
- Processing fees, charges and even interest payments on bridging loans can all be rolled into a one-off conclusive repayment (subject to the lender’s discretion).
- Bridging loans are robust and adaptable. They can be used to finance almost every business expense.
Potential Shortcomings of Bridging Loans
- A bridging loan, being a short-term mortgage, comes with higher interest rates than long-term mortgages.
- Some lenders may charge additional fees for early repayment.
- The principal loan amount of a bridging loan is usually much smaller in comparison with conventional property mortgages.
Bridging Loans Have a Lot to Offer – Get Yours Today!
Commercial Finance Network takes all the hassle in getting a bridging finance package approved out of the picture. Our bridging finance experts work at close quarters with specialist, UK-wide lenders to make sure that you get a fast, flexible and fair bridging loan deal right when you need it the most.
Get in touch with us to speak with one of Bridging Loan Experts today.