Bridging Loans – how does it work?by Vidit Agarwal Marketing Director What are Bridging Loans?
Bridging loan could be describes as a short-term property secured loan used to 'bridge' a gap between a debt coming due and the main line of credit becoming available in the UK. Or can simply act as a short-term loan only liable for the amount of time that the loan is used. In another words bridging loans are provided for a few months (usually 12 months or less). Bridging loans arrange faster generally 7 to 28 days, sometimes this can be reduces in few hours and require less documentation in the comparison of another loan.
When would someone need a bridging loan?
Bridging loans are used for a wide variety of reasons. This can be used in both commercial and property transactions. Whether you are buying a property, building a property or raising funds for your business, the short term loan can be an option. Some of following should be as below:
- Quickly securing a property
- Repairing a broken property chain
- Building a house
- Temporary Cash Flow Cover
- Renovation and development
- Raising capital
- Tax liabilities
- Meet business obligations
Who would qualify for bridging finance loans?
- Anyone who has equity in UK property or land that you can use as security to repay the loan.
- Companies or individuals
- Clients who are employed, self-employed or not employed
- Clients with an excellent or impaired credit rating
- Clients who can or cannot prove income
- If you find yourself unable to sell your property in time to buy a new home
Bridging loan is becoming more useful and valuable by individuals and businesses owner looking for quick, short term funding solutions. You can explore more at the website of DNS Accountants for what are bridging loans and its FAQs.
- What are bridging loans and how do they work?
- When should you use bridging loans?
- How much can a client borrow?
- Where can you get a bridging loan?
- What is the Interest on a bridging loan?
- How to calculate bridging loan?
For you knowledge you can explore this article Student Finance in the UK.
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Created on Apr 21st 2018 00:57. Viewed 611 times.