Bridging loans have been rounding up the business financing sector for the past years and for good reason. The said interim financing method that also doubles as a stop gap measure allows individuals or even companies to provide for their short term liquidity requirements should their long term funding be unavailable or is only yet to be made available.
If you are not well familiar with bridging loans then today must be your lucky day for we are going to list and drill down the major characteristics that set it apart from other credit and funding methods in its circle. Let’s begin, shall we?
1st Characteristic: SHORT TERM
Bridging loans are first and foremost short term in nature. In other words they only cater for immediate needs that span for a brief period of time like weeks to months. This is unlike traditional forms of credit such as a mortgage and a bank loan which will cover years, often ten or more, within its time span.
2nd Characteristic: IMMEDIATE
The processing for a bridging loan is relatively fast and you will not have to wait up for weeks or months to get an approval and for the cash to be released. This is why it is the perfect fit and funding method of choice for immediate needs such as a down payment for a property acquisition or legal costs attributable thereto.
3rd Characteristic: EASY
The application process is likewise easier and faster. There won’t be any need to go into all the trouble of providing for every document imaginable. This is a huge relief considering that much of the length of applications tend to be caused by all the requirements required by financial providers of other financing methods.
4th Characteristic: UNRESTRICTIVE
Users are given the liberty to use the funds as they please and as they deem necessary. This is because bridging loans are not restrictive unlike a bank loan for example which will specify the exact expense and the amounts that you should use it for. This is an advantage in such a way that users have more flexibility and freedom in its use; however, discipline must come with it so you don’t end up misusing the funds you just received.
5th Characteristic: FLEXIBLE
The payment method for bridging loans is very flexible. Borrowers have the option to close it even before maturity or at maturity once the long term financing has become available.
More on bridging loans at this site www.alternativebridging.co.uk