Bridging Finance has become a popular source of financial solution for many property investors. The quick and customized lending process is the reason that a large number of traders are switching to bridging loans.
- Bridging Loans are Quick
The best thing about bridging loans is that they can be arranged in a very short period of time. Presently, they are the quickest way to have access to capital. There may be circumstances wherein you have got a small window to arrange money and make payment. In such circumstances, bridging loans come to your rescue. It is the best short-term finance solution.
- Bridging Finance is Flexible
When you compare bridging finance with traditional financial solutions such as mortgage, you will find that bridge loans are more flexible. The traditional lenders always acquire more information about your creditworthiness and property. They will need all the gory details about your income and borrowing history before agreeing on lending.
- Bridging Loan can be taken for any Type of Property
You can use a bridging loan to get approval for any kind of property. You can take these loans to buy all types of property such as lands, houses, flats, apartments, commercial accommodation, and shops. You can invest anywhere as long as bridging loan option is at your disposal.
- Property Developer Finance Solution
Bridging loans will give you the needed support all through your development project. This is an important factor for traders and property developers. If you want to develop your property before selling it in a short period of time, bridging loans can come handy. It may happen that the short duration of time to arrange funds does not allow you to seek finance from other sources.
- Renovating Uninhabitable Houses
Bridging finance is the best if you are looking for renovating an uninhabitable property. The mainstream lenders are very reluctant about and refuse to lend finance to property investors wanting to renovate the uninhabitable properties. Such types of property are known to carry higher risk. The property might be highly potent but securing funds for such a property can prove to be an uphill task.
- Adding Value to your Property
Bridging loans can help you in planning the profit on your property and thus increase its value. For instance, if you find a land which does have planning permission, you might not be able to find the loan for that.
- Financing Purchases at Auctions
Bridging loans are the best source to raise funds in situations where you cannot afford delay. The lending process can be completed quickly and money can be exchanged in few weeks. So, when you bid at an auction and you have to arrange money within one month, you may seek a bridging loan.
Suggestion Reading – Tips for finding the right bridging loan lender