How does Bridging Finance workBridging Finance: How does it work?
It comes from the word "bridge", which means that you close the loop between purchasing a house while you wait for the sale of the other one.
A bridging credit can be used as a short-term credit in frantic conditions. What is a bridging credit like? Bridge credits are quite similar to ordinary credits, however a bridge credit can be done within 24 hrs, while a ordinary credit can take month to be done. The creditor has at his disposal a copy of the aggregate of the transaction requested, including the reasons for the claim for a bridging credit, the redemption schedule and the available collateral.
Thereafter, the creditor receives a certificate (if approved) containing the information about the intended real estate and the estimated purchase cost. I will also give directions as to what needs to be done in order to obtain the financing.
As soon as this is done, the creditor informs a surveyor who then prepares a surveyor' s assessment which is sent (together with all documents) to a lawyer who explains the general business policy. Who' s using a bridging credit? Bridge credits are primarily intended for lessors and builders, but those who are affluent or currently high net worth individuals can request a home bridge credit.
Which documents do I have to present for a bridging credit? Bridging lenders need a business overview with the rationale for requesting a bridging facility, the collateral available and the repayment policy. If I have poor credits, can I take out a bridging credit? Yes, a bridging loan can be granted - even if the loans are poor, but it is always worthwhile to consult financially beforehand.
Contact a financial agent before registering for anything. It' normally for those with a bad loan history to be in doubts when it comes to alternate financing possibilities like many things you will never know unless you ask. Which are the advantages and disadvantages of a bridging loan?
Are bridging loans the right option for my company? When you can't immediately resell your existing property and desperately want to move into a new one - whether because your company is growing or contracting - a bridging credit is the best for you.