Fast bridging finance, as its name implies, is a type of short-term loan that gives you access to funds quickly. It can be used for many different purposes.
Bridging loans are popular solutions for house flipping or funding property renovations and extensions. Businesses also find them to be an efficient source of fast-access capital.
1. Fast application process
Fast bridging finance allows you to purchase property quickly, without waiting for a traditional mortgage. This is especially helpful for businesses and property investors who may be short on time when it comes to making property acquisitions.
Bridging finance applications are usually processed within 72 hours, though this may take longer depending on the lender and your individual situation.
It is essential to provide all required documentation upfront and promptly, as this will make the process go more efficiently. Additionally, working with an experienced bridging finance broker who can source competitive bridging loan deals from specialist lenders and guide you through the procedure is beneficial.
Bridging loans are considered higher risk forms of financing, so lenders will require a repayment plan and an effective exit strategy. This may include plans to refinance or sell the property once the loan has been repaid.
2. Competitive rates
Fast bridging finance is a great option for anyone in need of funds – from homebuyers and business owners to those simply needing some quick cash flow. These loans usually come with competitive interest rates, allowing you to save money over the long term by paying less interest.
When it comes to bridging loans, several factors can impact your costs – such as the amount you need to borrow and the term. However, there are ways you can reduce these expenses:
Shopping around for the best deals is key when looking for a loan, especially if you need large sums of money or need to take out a bridging loan for business use. Be sure to factor in all fees associated with borrowing money – these could include an arrangement fee, exit fee and broker/solicitors fee.
3. Flexible terms
Bridging finance offers borrowers a range of flexible terms, making it an ideal option when seeking funding. This makes the service ideal as it enables borrowers to secure multiple loans from one provider – such as mortgages, refurbishment projects and property development ones – plus tax liabilities too!
Businesses often rely on bridging finance for short-term cash flow solutions, like revolving trading facilities, that help keep their operations running smoothly during trying periods. These loans allow companies to manage their debt more effectively, leaving them in a better position to absorb unexpected expenses as they arise.
Are you uncertain whether fast bridging finance is the right solution for your business? Speak to our financial experts. They can guide you through the process and find the ideal solution. They will explain the advantages and drawbacks of each type of loan, helping suggest which option best suits your needs.
4. Quick turnaround
Fast bridging finance provides instantaneous access to funds for various uses. Whether it’s used to purchase a property, fund development or release equity from an existing home, these loans give borrowers temporary relief until they can sell their home, access other sources of funding or find long-term financing, these loans provide peace of mind until those necessary steps have been taken.
In some instances, this can be as fast as a few days. That is why selecting a lender with an established record for offering speedy turnaround times is so crucial.
Particularly when handling high-value, sensitive or complex bridging finance transactions, having access to the market can be invaluable. A reliable broker will have knowledge of lenders who will likely offer the quickest turnaround times for your particular case.