Bridging loans offer access to money quickly

Thursday, 03 November 2011 05:37

Bridging loans can provide urgent funds

Bridging loans can provide urgent funds

If you find yourself in a position where you need to access money quickly, it is worth considering the benefits that are on hand with bridging loans. As such products are specifically designed for those who require funds urgently, they can prove to offer a timely cash boost.

As these loans see you obtain credit by borrowing against the value of a property – be it a residential home or commercial outlet – it is possible to obtain a sizeable sum of money. This depends on how much the development is worth, but as you can get upwards of £250,000, they can be a great way to meet a range of financial goals.

One area where this can certainly prove to be the case is when buying a property. If you have been looking to advance up the housing ladder for some time, an unexpected hold-up in the transaction could put you at risk of losing out on your dream residence. This may take the shape of a delay in a valuation report on your existing home being carried out, but whatever the problem a bridging loan could enable you to continue with the purchase and get the keys to your new place.

Alternatively, it may be an idea to seek out bridging loan help after bidding for a property at an auction. Typically, you'll only have about four weeks to raise the total amount of money for the development but as this may not be enough time to get a mortgage sorted, a bridging loan can give you the cash needed so that you don't end up losing out on your investment.

Of course, bridging loans are not only a useful product for individuals but can also be put to great effect by businesses. One instance where this may prove to be the case is if a pressing deadline requires a company to invest in additional materials and/or staff in order to meet a contract. By applying for a bridging loan, a firm will be in a position to get the resources they need to deliver the goods or services required of them.

Perhaps one of the greatest advantages of bridging loans for those who require access to credit quickly – for whatever purpose – is that they can be taken out at extremely short notice.

After you have submitted your application, a lender will inform you whether you have been approved in less than 24 hours. Given that this is the case, the cash will be deposited into your account that same week, meaning that you are free to go ahead and spend it as you wish.

It is also worth remembering that bridging loans are an option for a significant number of Britons. As long you own your home and are not presently bankrupt, you should find that you're in a position to borrow money. Even if you have had difficulties in the past with repaying credit cards and are currently struggling to successfully apply for loans from other financial services providers, it should not be a barrier to you getting bridging finance.

When it comes to getting your hands on competitively-priced credit quickly, it is certainly worth knowing all about bridging loans. That way – should you need it – you will be aware of exactly where to turn in order to get the financial assistance you need.



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Finance articles

  • Is a bridging loan right for budding entrepreneurs?

    Raising the money you need to start a business can be hard, however, there are alternatives to bank loans. Among them are bridging loans, peer-to-peer lending and borrowing money from friends and family, meaning you need to do plenty of research.

  • Important questions to ask bridging loan companies

    Before taking out a bridging loan, you must understand a number of key points. These include the rate of interest you will be charged, the length of time you have to repay the loan and whether there are any arrangement fees that apply.

  • Why bridging loans are only suitable for short-term funding

    You should only consider bridging finance if your funding needs are temporary. This is because the high rates of interest make bridging finance unsuitable as a long-term solution, so if you have long-term needs, you should look at other options.

  • Banks vs. specialist lenders – which bridging loans are best?

    Both banks and specialist bridging loan companies can provide the bridging finance you need, meaning you need to compare products from a range of providers. You need to look at factors such as interest rates and arrangement fees.

  • Can bridging loans work for those who only need small amounts?

    Some bridging loan companies will lend up to £5 million if you have sufficient equity in your home, however, what if your borrowing needs are more modest? If you need a sum of £10,000, bridging loans can still be an option.

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