We all love a good deal and it is for this reason that we all tend to gravitate towards options that are not only at a reasonable price point but also one that covers our needs and cones with a lot of benefits. It’s therefore not surprising that bridging loans have become quite the superstar in the world of finance. But then again not everyone knows about or is fully acquainted with them to even realize and acknowledge their perks. To fix that dilemma we’ve made a list just for you. Check it out below.
They are short term in nature. Unlike other credit options, bridging loans will only span between two weeks up to two or three years at most. With this comes lesser burdens and risks.
They work on the interim. This means that they are taken out pending the arrangement and/or availability of a main fund line, often a bigger and permanent financing which by nature mostly take time to either pool (e.g. income, sale proceeds, and salary) or arrange (e.g. bank loans and mortgages).
There is no restriction to their use. The funds taken out via a bridge arrangement may be utilized in whichever manner users deem fit. There are no restrictions imposed as to how they are to be spent which is oftentimes observed in other alternatives in the market, for instance in the case of a loan where it may only be spent on a specified and approved expense account by the creditor.
Payment options are flexible. Users have the liberty to choose between closing it at maturity date or before. The former uses part of the main fund line to close the bride while the latter is one that seeks savings on interest expenses, an option not available in other financing alternatives.
They help hasten transactions. Bridging loans were named as such because they connect the gap between a need coming due and one’s bigger and long term source of cash. Since many transactions require a pre-purchase costs or where expenses will have to be spent prior to a closed deal, the immediate funds it provide allow people to grab the opportunity the soonest possible and before anyone else does.
They are immediate. Perhaps one of the most celebrated benefits of bridging loans are their ability to be processed or arranged as well as released within a short amount of time. Given that they were designed to provide for short term liquidity needs, speed is their middle name. www.alternativebridging.co.uk