Bridging Finance – or Bridging Loan – has become a widely-used service when it comes to drawing a short-term loan for the interim period between applying for a long-term loan and actually securing one. As such, the most common situation in which a Bridging Loan is generally taken is a temporary ‘short on cash’ period which one comes across while purchasing a business or property, may be even paying for a renovation of some kind. For instance, the requirement of availing a Bridging Loan may arise when you want to purchase a second property/business before you can work out the sale of a previous one; or even when you are purchasing some property at auction.
Bridging Finance is ideal loan option during temporary cash shortfall: Though Bridging Finance was initially considered the ideal loan option to prepare for the traditional kind of loan; the service is now largely being used in a more flexible manner, to ‘bridge’ the time-period between a temporary ‘cash shortfall’ and securing a conventional loan. The commercial Bridging Loans London can put you in a strong negotiating position during the process of purchasing commercial property; thus giving you the ability to purchase property sans the urgency of having to dispose off your existing property or some of your other assets.
Bridging Finance gives you the leverage to pay off other loans in full: One of the main reasons why Bridging Finance is being increasingly considered a better loan service than some other loans is that Bridging Loans are usually secured on property and other high-value assets. With Bridging Loans essentially having the leverage to fully pay off other loans, credits cards, etc., securing a loan of this kind implies that you will forego all or a maximum part of your interest on the loan for a somewhat long period of time.
Bridging Loans have lower monthly repayments: Another advantage of Bridging Loans is that the payments for these loans are ‘interest only’ payments; thereby leading to low monthly repayments because you do not have to pay back any of the principal amount of the loan. However, since Bridging Loans are largely short-term loans, the rate of interest on them is typically higher than the interest rate of a mortgage, for example. Nonetheless, the Bridging Loans service is apparently the best and the most useful service if you require instant funding for some specific purpose.
Bridging Loans are a good way to secure your business: Given the fact that the Bridging Loans process is a fairly simple one, you have the benefit of securing your business through these loans by negotiating the terms which you would like to apply. The ‘short term’ feature of the Bridging Loans service not only unfolds a rather quick way of securing funds, but also helps you in resolving Tax Liability, especially when funding deadlines are to be met. A Bridging Loan can be drawn by your company to ensure that your business premises are secure. Bridging Loans London is available for reasons such as investment and owner-occupied properties; including commercial Bridging Loans for office complex, retail and licensed premises, professional practices, commercial or residential development and other such business activities.
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