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