Bridging Loans Explained

Interim loans declared

BRIDGE CREDITS DECLARED While there may be periods when you want to buy a new home, it can take much longer than anticipated to sell your current home. A bridging credit enables you to close the difference between the sales of your current house and the acquisition of your new one. The bridging loans are secure loans, so the creditor will either put a fee on the borrower's current ownership if it is not encumbered, or he can use the ownership he wants to buy as collateral.

Bridge loans can be used for most kinds of real estate purchases: Once you have all the necessary documentation at the moment of applying, you can build a bridge within 24-48hrs. Supreme Finance's bridging credit taking procedure is quick and easy, and our loans can be tailored to your individual needs.

Humans often hesitated when they decided on a bridging credit, this can often be due to their poor lending track record. Bridge loans are either secure on an exisiting real estate or against the new real estate for which the facilities are needed, which almost anyone can use. Bridge loans are short-term loans, therefore the interest rate is usually higher than for conventional loans, and it is very important to pay back the loans on schedule, the payback period is usually between 3-12 month, in some cases an extended period can be agreed.

Explanation of bridging loans and financing arrangements

How much is a bridging credit? In general regarded as a way of short-term financing, bridging loans are ideal to support companies in challenging or low phases of low liquidity. For many entrepreneurs, what makes this an appealing financing option are the possibilities for repaying the loans. In contrast to most kinds of loans, such as Term Loans, you can either disburse the entire amount of the loans or turn into something similar to a hypothec.

In contrast to short-term loans, which are used more for commercial purposes, bridging loans are more suitable for short-term uses, such as a Cashflow-Subvention. Like the name implies, it is a financing approach that will support your company and carry it from one cycle to the next. A bridging loan - what is it? Usually this kind of financing is used by businessmen who either want to buy or refurbish an already built home.

It is therefore also regarded as another type of real estate financing. So, if you are a shopkeeper who wants to extend your facility or client area, this is just one of many things you should consider. One of the things that makes it ideal for most shopkeepers is that it is instant.

As with bridging loans, when in talks with a prospective creditor you must make a decision as to how you will make the repayment. Our assistance is provided to a broad spectrum of SME companies of all types and sizes in the search for any kind of financing. Join us on Twitter and LinkedIn for our latest advice and hints and call us at 0203 637 2340 if you want to talk about what we can do for you.

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