Bridging Finance: Effectively Bridging the Fund Gap

Richard Butler Creagh

Bridging Finance: Effectively Bridging the Fund Gap

Despite your best efforts at getting your finances in check, there may come be a time when an immediate need comes up. For those instances when you have to find an immediate solution to a short-term financial need, bridging finance is one choice that you can take advantage of.

This financing medium has been one of the most popular options that a number of people in the real estate world have been turning to for those instances where they need a means to fund a property purchase- especially an urgent one. Read on and find out how this might just be the financial solution that you are looking for.

As the term suggests, it is financing that is often used as a means to bridge finding gaps that may be brought about by timing obstacles. It is a short-term loan which is taken to provide the borrower with an immediate and short-term fund in order to push through an asset acquisition transaction. It is fast becoming a widespread option for many a property seller and buyer today mainly because of the numerous benefits that it offers.



Flexibility

Unlike other credit types, bridging loans offer flexibility. Borrowers are given two options when it comes to repayment and it is up to them to choose the one that favours them best and suits their paying capabilities the most. The first option is where one can choose to have the loan closed before its maturity date. This means paying the loan off as early as one wants and when he is capable of getting it paid in full. The second option is where one can choose to have it paid upon its maturity, which means the very day when permanent financing becomes available.

Opportunity

Time is a very crucial factor when it comes to property purchases. This is why if there is a property that you want, grabbing it now may be the most sensible thing to do or others might just beat you to it. Since sellers would need security deposits or downpayment to be made first, buyers whose funds are still pending will find this quite challenging. The use of bridging finance ensures that the opportunity is not going to be lost.

Temporary

As a short-term loan, it is designed to be a temporary fix for those that are in need of some immediate solution to their liquidity needs. Being temporary, bridging loans tend to be less burdensome especially when compared to other forms of credit that are available in the market

For people that do not want to have to wait until their property has been sold in order to proceed with buying a new one, bridging finance is the most suitable solution. It ensures that they will have the funds needed to buy the new property and it eliminates the need for them to have to wait for their present property to be sold. Learn more about the many ways that bridging finance can help you by reading more about Richard Butler Creagh online.

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