Bridging Loans Information

If you ever find yourself in need of short-term financing that needs to be secured in a hurry, a bridging loan could be just what you’re looking for. Usually taken out for a period ranging from two weeks to three years, bridging loans are intended as an interim financial solution that enables you to move forward before permanent, long-term finance has been secured. Bridging loans can be used for a variety of different purposes, both by individuals and businesses, but almost always follow the same structural pattern. If you need a short-term cash injection, our team of experts can call upon their collected industry experience and wide range of lending partners to secure a bridging loan that is just right for your needs.

Bridging loans have a varying degree of risk attached to them, depending on the size of the loan, the intended purpose, and the equity of the property or assets that are used as security. Although bridging loans are generally more expensive than conventional finance, due to their flexible short-term nature, the lender’s fees will vary depending on the level of attached risk. Bridging loans usually take around 7-10 working days to arrange, although in certain circumstances they can be turned around within as little as 48 hours.

Although people take out bridging loans for a variety of different reasons, they are usually acquired when a client has a source of permanent finance on the horizon that won’t arrive in time to meet their needs. Private individuals often take out bridging loans to secure a new property before their current property has been sold, and in the business world, bridging loans are popular in the fields of both real estate and venture capital. In commercial real estate scenarios, bridging loans are commonly used to quickly close on a property or retrieve it from foreclosure, allowing property developers to move quickly in the short term without having to rush through a long-term financial solution. In venture capital, bridging loans are often taken out to finance continued trading in between large, structured private equity financing, or while a permanent investor is sought. In either circumstance, a bridging loan provides businesses with an immediate financial solution, which gives them room to manoeuvre while a suitable long-term solution is secured. If your business is in need of a large, immediate financial injection, contact First National Money today for a free quotation.