Bridging Fund

There are many forms of finance out there from mortgages to short-term loans which are used for a plethora of different purposes. Bridging finance is a relatively unique form of short-term loan often drawn upon by people or businesses who require a quick injection of cash but plan to have the funds to either repay in full or transfer the debt to another form of finance. So, for example, a property developer who has spotted a bargain at a property auction may make an impulsive purchase, they don't have the funds to hand and will lose the property if they can't pay a deposit within the week. In this situation, the property developer calls upon bridging finance to literally bridge the gap between paying the deposit and either releasing the funds from other assets or arranging a mortgage.

So that's a brief explanation of what bridging finance is, so why choose a bridging fund over and above any other loan?

There are three main benefits to bridging finance that makes it the preferred choice of many.

1. Speed - bridging finance can be accessed almost immediately making it an exceptionally fluid form of finance which is suited to time-sensitive purchases. Most bridging loan companies can make a decision and deposit the funds in your account within 24hrs. This can ensure your intended purchase doesn't get stolen from under your feet by a competitor who has the funds to hand.

2. The amount - unlike personal loans, bridging funds are flexible in the amount you can access allowing you to take loans often in excess of 1million. Of course, the amount approved will depend on the project, its intended use and the individual or company's ability to meet the repayments, but large sums of money are often accessed to undertake major projects such as the refurbishment of an apartment complex. Once the apartments are sold the owner will repay the loan and pocket a healthy profit.

3. Flexibility - bridging funds are flexible in all areas including the amount loaned, speed of access and repayment terms. You can often negotiate a delayed repayment with the loan company that allows you to repay any fees and the loan in one lump sum saving you valuable interest. The purpose to which you undertake the loan can also be much wider than with a traditional loan. Bridging funds have been used for everything from new builds to refurbishments, selling homes and paying accumulated fees. Where a traditional form of finance would constrain its use, bridging finance provides the payee with much more freedom.

These are the main reasons why hundreds of individuals and businesses turn to bridge finance for quick and reliable access to immediate funds.