A bridge loan or bridge loans may be the perfect solution to your funding needs if you are having trouble getting traditional financing. Short-term bridge loans can be used to help secure funding for a short period of time and to act as a stopgap measure before securing a more traditional financial solution, such as a bank loan or mortgage.
Bridge Loans: What Are They?
Businesses seeking a quick funding solution with minimal checks can find bridge loans, also called gap loans, to be a valuable resource. A bridge loan lasts for a fixed time period –usually up to one year — and can provide a company with temporary financial support while it’s adjusting to its new financial situation.
In addition to start-ups, many established companies use bridge loans to finance their projects and investments frequently. This is because bridge loans are extremely useful when a funding opportunity arises, but the capital isn’t available immediately. A bridge loan is an easy and straightforward option, and it fits any budget. At the end of the term, you pay back the loan in full.
Why Bridge Loans Are a Good Idea
Bridge loans are one of those basic, yet extremely powerful forms of financing. In addition to helping, you launch your business, they can also help you grow as a business once it’s up and running.
How Do They Work?
It is common for bridge loans to last between three and twelve months, but the duration can vary depending on the lender and your specific needs. The purpose of a bridge loan is to provide you with funding until your project or business is secured with more permanent financing. A bridge loan could be taken out to start a costly construction project that requires heavy investment to kick start. Another option could be to help fund company expenses like supplier invoices or wages bills until customer invoices are paid.
How Long Do They Last?
A bridge loan can last anywhere from 3 to 12 months. It really depends on your financial situation and the type of loan you’re seeking as well as the lender you choose. Additionally, some lenders may offer additional deals or loan extensions at the end of the current term, so some bridge loans can be extended to accommodate long-term situations.
How does the Bridge loan calculator work?
You can use a bridging loan calculator to figure out the cost of a bridging loan by entering the value of the property you want to purchase and the amount you want to borrow.
Benefits of a bridge loan
When quick funding is required 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.
Furthermore, 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, require bridge loans.
While bridge loans typically have higher interest rates, in some situations they may be able to save money in the long run if lost income or revenue is considered. It is for this reason alone that bridge loans are so valuable and more than just a way to finance large purchases or to streamline business operations.
In the UK, who can offer bridge loans?
There are many companies in the UK offering bridge loans, however most of these are usually brokers or middlemen without direct access to funds. Bridge Direct is a direct lender, not a broker. This means they have direct access to funds and can process your application immediately.
What makes Bridge Direct the best choice for a bridge loan in the UK?
Bridging Direct provides flexible options that fit their customers’ financial situations and needs for bridging loans throughout the UK. Bridge loans have been provided by them for over 30+ years, and they are direct lenders, not brokers. When you contact Bridge Direct, you can be certain 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 offers customized solutions tailored to meet the needs of each client. Bad credit is considered as well as 1st and 2nd charges on a property. They know what clients need and how they can meet those needs.
On www.bridge-direct.com, you can fill out a form to get a free, instant decision on your loan request or you can contact a decision maker directly on 020 3126 4969.