As if real estate isn’t already complicated on its own, here comes the challenge of financing. Assets are known for being massive both in size and in value so it is no longer a surprise that one needs a lot of resources to make an acquisition. Luckily, commercial bridging finance comes to our rescue! But what is it to begin with?
Commercial Property bridging finance is an interim financing arrangement that provides a short term loan until a permanent source can be obtained or becomes available. They are popularly used whenever sources such as bank loans, mortgages, sale proceeds or income do not arrive on time but a need has to be fulfilled. Upon the arrival of one’s permanent funding, the bridge shall then be closed with it. But of all financing options in the market, why choose it?
Because it has hassle free application.
What makes it a great form of interim finance is the ease and speed by hich it takes to process compared to others of its kind. The funds can be made available in mere days or weeks for many providers.
Because it is short term in nature.
The longer the loan runs the longer borrowers shall be burdened by it. Its short term nature allows for lesser fees to worry about and lesser months to pay off as well. There are lesser risks to nonfulfillment with the use of a bridge.
Because it saves investors a lot of time.
Buyers no longer need to wait for a loan’s approval and release before they get to acquire that new building. They can use the bridge to pay up the upfront costs such as the down payment, move in and go on with operations. Time is of the essence so the faster things are done the better because investors suffer lesser risks and opportunity losses which brings us to our next point.
Because they minimize if not remove risks.
Buyers do not have to worry about failing to come up with funds needed to seal the deal on a prime asset. They need not suffer from opportunity losses brought about by failing to come up with an upfront payment for the purchase.
Because it is easy to pay off.
Commercial bridging finance allows for liberty of payment with its flexible options. It allows borrowers to choose when to pay and close it. It can be done before maturity and as early as possible or at maturity date which is the time of availability of one’s permanent and main fund line http://www.alternativebridging.co.uk/.