The Four Biggest Benefits of Bridging Loans |
Posted: March 15, 2022 |
Bridging loans are bespoke short-term financial products, tailored to meet the unique requirements of each individual applicant. They can be used to fund a long list of purchases and investments, or to cover time-critical costs in a pinch. Over the past year, UK bridging loan completions reached an all-time high. More businesses and consumers are taking out bridging loans than ever before as an alternative to the mainstream products available on the High Street. But what is it about bridging finance that makes it such a popular facility? How do bridging loans differ from conventional loans and in which instances is bridging finance considered a better choice? 1. Bridging Finance is Fast In terms of speed and simplicity, bridging loans are in a league of their own. A typical bridging loan application takes just a few days to process, after which the funds are transferred to the applicant’s account. In some instances, the entire process can be completed in a matter of hours. Quite simply, there is no product on the market that offers faster access to significant sums of money. If your application and paperwork are in order, anything from £10,000 to £10 million could be yours by the end of the week. 2. Bridging Finance is Flexible Most conventional loans are issued for specific purposes and come with fairly tight restrictions. With bridging finance, there are no restrictions whatsoever - the funds raised can be used for any legal purpose whatsoever. In addition, repayment terms can also be negotiated to suit the requirements of the borrower. Bridging finance is usually repaid between 6 and 18 months after the loan was issued, though is exclusively provided as a short-term facility. 3. Bridging Finance is Affordable Unlike conventional banks and lenders, most bridging specialists encourage and reward early repayment. A typical bridging loan may be issued at a monthly rate of interest as low as 0.5%. Repaid promptly, this allows the borrower to keep overall borrowing costs to the bare minimum. With the help and support of an experienced broker, all other fees and charges can also be minimised, if not avoided entirely. Examples of which include arrangement fees, administration fees, processing fees, exit fees, valuation fees and so on. 4. Bridging Finance is Fair Bridging finance specialists do not base their decisions exclusively on ‘binary’ factors like credit scores. They instead look at the bigger picture, assessing applicants’ eligibility on the basis of a much broader range of factors. Examples of which include general financial status, the borrower’s planned exit strategy and the value of the assets used to secure the loan. This means that even with poor credit and/or a history of bankruptcy, it is still possible to qualify for a competitive bridging loan. Seek independent broker support before applying, which will help you present a convincing case to an appropriate panel of lenders. Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, djkit.com, UK Property Finance, Serimax and has also supported UK doctors, solicitors and property developers to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.
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