“Bridge the gap” and take advantage of short-term property finance solutions with bridging finance.
Bridging finance is a short-term financing option utilised by companies and businesses to get funds while a long-term financing option is in process.
what DOES IT COVER?
Companies and businesses resolve to get bridging finance when they need money to cover interim expenses while waiting for long-term financing. You may opt to use a bridge loan for working capital funding to cover rent, payroll, utilities, and other basic expenditures until the long-term funding goes through.
HOW DOES IT WORK?
Bridging finance may be arranged in many different ways and solutions will depend on which options are available to your company. Bridge financing opportunities include equity, loan, and IPO bridge financing.
Here are the steps in acquiring bridging finance with Squared Commercial:
- Contact us or request a call back so we can assess your requirements
- We will work with you and lay down your options in detail
- Once everything is clarified with you, we will then provide you with a decision in principle for the loan. You may use this as proof of finance when you negotiate with vendors and estate agents to place an offer on a property – essentially, they need to be assured that you have the funds and are ready to proceed.
- We begin the application process with the bridge financing lender – solicitors will be given instructions and surveys for valuations will take place.
- The funds will be made available to you as soon as the above steps are completed and the lender provides the approval from their underwriting department.
Bridging Finance is very useful in a number of circumstances like investments, development of property, and buy-to-let purchases. The interest rates are based on the loan amount and the risk to the lender. Traditionally, this type of loan was structured to help in purchasing a new property before selling an existing one; but these days, it is more commonly used to gather funds quickly especially if a mortgage isn’t an option at a particular stage.
Get in touch with UK’s best finance advisors for more information on Bridging Finance.
We are a friendly, helpful team of bridging finance advisors and we’d love to assist you.