Bridge Loans: How to Benefit from Them
If you’re having trouble getting approved for traditional financing, then bridge loan or bridge loans might be the perfect solution to your funding needs. Bridge loans are short-term secured loans that can be used to help secure funding for a short period and can be used as a stop gap before securing a more traditional finance solution such as a bank loan or mortgage.
What Are Bridge Loans?
Bridge loans, also sometimes referred to as gap loans, can come into their own for businesses looking for a quick funding solution with minimal checks. Bridge loans are designed to last for a fixed period—typically up to one year—and can provide a company with temporary financial support while it’s getting its footing and its finances in order.
Bridge loans aren’t just limited to start-ups; many established companies use bridge loans regularly to help fund projects and investment. Why? This is because bridge loans are extremely useful when a funding opportunity arises but the capital isn’t immediately available. Bridge loans are easy and straightforward and they fit every budget: You choose how much you need and how long you want that money available, and pay the loan off in full at the end of the term.
Why You Should Consider Bridge Loans
Bridge loans are one of those basic but highly powerful forms of financing. Not only can they help you get your business off and running to a flying start, but they can also help you grow as a business once it’s up and running. Bridge loans tend to be unsecured lines of credit that allow businesses just starting out or in need of additional funds access to money for things like a new project or product line, marketing purposes, etc. Bridge loans can carry high interest rates, however there is a trade off as there is often very little pre-qualification required—so even start-ups companies can qualify, as long as they hold enough capital in the security property.
How Do They Work?
Bridge loans typically last around 3 to 12months, but that may vary depending on your specific needs and the lender being used. A bridge loan is designed to release funding until you can secure a more permanent financing solution for your project or business. An example of this could be where a bridge loan is taken out to start a costly construction projects that needs heavy investment to kick start the process. Another could be to help fund company out goings like supplier invoices or wages bills until customer invoice payments are cleared.
How Long Do They Last?
Bridge loans can last anywhere between 3 to 12 months. This period really depends on your individual financial situation and what type of loan you’re looking for and then lender you are using. Some lenders may also offer additional deals or loan extension at the end of the current term, so some bridge loans can be extended to accommodate long term situations.
What is Bridge loan calculator?
A bridge loan calculator helps you to find out the overall cost of a bridging loan by allowing you to put in the values of the property you want to buy, and the amount you want to borrow.
Advantages of a Bridge Loan
Bridge loans can help to carry business owners through difficult or pressing times when cash flow is an issue, or when quick funding is require to purchase additional investment properties. They are also an ideal go to when funding cannot be sourced from more general lenders such as banks or mortgages.
Additionally, bridge loans can be used for more than just buying a new investment property, other situations such as refinancing existing debt or paying off short-term loans are suited towards bridge loans.
Whilst bridge loans typically come with higher interest rates they can in some circumstance save money in the long term if lost income or revenue is taken into account. It is for this reason alone that makes bridge loans a tremendously valuable asset and more than just an aid for putting big purchases and company operations in order.
Who Can Offer Bridge loans in the UK?
There are many companies in the UK offering bridge loan services,however, many of these are usually brokers or middle men without direct access to funds. Bridge Direct as a direct lenders, and not brokers. This means they have direct access to funds and can give you an instant decision on any bridging loan application.
Why Bridge Direct is the best choice for the Bridge loan in the UK?
Bridge Direct offers bridging loan solutions throughout the UK, providing flexible options that suit theircustomer’s financial situation and needs. They haveover 35 years’ experience in providing bridge loans, and are direct lenders, not brokers. When you contact Bridge Direct you can be assured that you will be speaking directly with a decision maker, and that no matter your situation, Bridge Direct may have a bridging loan solution for you and your business.
Bridge Direct believe that every client is unique; so they offer customizable solutions tailored to meet your specific needs, bad or adverse credit is considered as well as 1st and 2nd charges on property. They have a great understanding of what clients need and how they can help fulfil their requirements.
Visit www.bridge-direct.com and fill out the form to get a free instant decision on your loan request or you can contact a decision maker directly by calling on 020 3126 4969.