| By definition, Bridging Finance or Bridging Loan is a | | | | out from under a Bridging Loan fast. However, it |
| short-term loan used to purchase commercial | | | | is still something that will need to make sense for |
| property. This is something that can come in very | | | | your business. |
| handy, depending on your particular situation. | | | | If you feel taking on this type of loan is the right |
| There are two main points that you need to | | | | thing to do, you will be far better off going |
| consider before you opt for a Bridging Finance | | | | through a specialist Commercial Lender. |
| package, your needs and the state of the | | | | They will shorten the entire process as a specialist |
| property market. | | | | will know the market and they can quickly make |
| One of the major benefits of Bridging Finance is | | | | a judgment on the best loan for you, based on |
| that it will allow you to close on a property and | | | | your particular circumstances. Be sure to check |
| purchase a new property before you sell your | | | | that the loan can be converted into a conventional |
| existing one. You will need to evaluate your | | | | Commercial Finance package. You will also want to |
| current situation to determine if your needs | | | | check on the type of interest rate and the costs |
| justify taking on this type of finance. Will you lose | | | | you will entail if you do have to convert. |
| the new property if you can't offer a deposit? | | | | Most Commercial Lenders will be willing to extend |
| Would you be eligible for a discount on the | | | | the terms of your Bridging Finance package. Let's |
| purchase price if you can come up with the cash | | | | say, for example, you have a buyer and you are |
| fast? | | | | waiting for the sale to close. Bridging Finance in |
| What are the existing market conditions in regard | | | | general is much more flexible and accommodating |
| to the sale of your existing property? Is it going | | | | than you might expect in this respect. |
| to be possible to sell your existing property in the | | | | Paying back your Bridging Loan at the end of the |
| time frame set out in your finance package? Most | | | | loan term more often than not depends on your |
| Bridging Finance typically runs for one year and will | | | | ability to sell your existing property. If it does not |
| need to be paid in full at the end of the term | | | | sell in the required time, you will be paying the |
| unless it is possible to convert it into a | | | | existing loan on your current property, your new |
| Commercial Loan. You will also need to be aware | | | | property and the newly converted Bridge Finance |
| that the interest rates will be higher on a Bridging | | | | as well. |
| Finance package. | | | | If you believe this may be a possibility be sure to |
| If the market is slow and you do not have an | | | | take a package that can be converted to a |
| urgent need for the new property, it may not be | | | | Commercial Loan if the need arises. Otherwise |
| in the best interest of your business to take on | | | | you may have to come up with the full Loan sum |
| this type of loan. On the other hand if the | | | | at the end of the finance term. |
| property market conditions are good, you can be | | | | |