Who does Bridge LoansWhich bridges loans?
What are Bridge Loans and Bridging Finance like?
It provides an immediate resource for liquidity and funds that can be used to keep the company going or safeguard ownership, usually for a timeframe of up to a year. What is the use of bridge loans by companies? Companies involved, for example, in providing venture finance (raising finance through the purchase of shares) may require working capitals in the few month periods necessary to develop the fund.
As soon as the capital resources are secure, the bridge loans are repaid immediately.
Bridge an outstanding bridge facility
Often a number of borrower are looking for a bridge credit to fund an exisiting bridge credit. Borrower cannot separate from bridge loans with longer-term funding from conventional creditors for a variety of factors due to delays in contractor due to construction delays or obtaining construction permits, as well as broader mortgage back edia.
Sometimes it can only be due to the fact that the maturity of the initial bridge credit was too brief. Quite a few bridge creditors follow a standard methodology and are hesitant to fund bridge loans, often rejecting an offer before reviewing each case for its specific benefits. Whilst MTF is receiving a large amount of uncomplicated daily funding requests, we are particularly proud of our capacity to support agents and proposers in more tricky cases.
The MTF is in a position to bridge the gap on bridging loans. Although the landlord of an asset in Henley-on-Thames was in the 11th months of a 12-month bridging credit, renovation lags prevented him from completing the work before the bridging credit expired. The MTF judged the case and provided the claimant with a 394,000 bridging credit on the basis of its merit to fund its bridge, which was backed by a first fee.
Be it a case of a project that has come to a standstill due to inadequate liquidity and needs extra funding to close, or an entrant who has been disappointed at the last moment by another creditor and needs immediate funding, MTF has the ability to implement and offer a workaround.