For those interested in bridging loan funding and what the funds can be used then the answer is – just about anything!
As short-term financing, bridging loans are increasing in popularity as an alternative financing arrangement that can be quickly arranged for a range of purposes.
Most bridging lenders have a very simple and easy application process which is quicker than traditional banks will offer.
When it comes to the purposes of a loan, bridging loan lenders are willing to meet a variety of needs and this source of finance is no longer just for those looking to find the money to buy a property while their current home is in the process of being sold.
A short term bridging loan could be used to refurbish or convert a property
For instance, a short term bridging loan could be used to refurbish or convert a property with the money raised from the sale used to repay the loan and with traditional lenders often ignoring unsuitable properties it is possible a bridging lender may be attracted to this proposition.
For this reason bridging finance is also popular for those looking to buy property and also build homes and refurbish or redevelop properties too.
The other big attraction for those wanting a bridging loan is to meet a short term financing need and the lender will operate on various criteria that depends a lot on the borrower’s circumstances; it’s not just a black and white process that most high street banks will be operating.
This means that bridging loan finance firms can think differently about how the finance can be used and for what purposes and, more importantly, the borrower concerned; they do not need to have an impressive credit history since each application will be decided on its own merits.
The bridging loan rates vary depending on the loan’s purpose
However, potential borrowers should appreciate that the bridging loan rates vary depending on the loan’s purpose – the uses for bridging finance are so varied that the entire list of reasons could not be given in detail here but will involve developing hotels and luxury apartments, for instance, and also for developing offices and care homes as well.
The main attraction is that bridging finance can be arranged quickly when necessary with little restriction on what the money can be used for.
Bridging finance providers will give a quick decision and then move quickly to arrange the paperwork and deliver the funds to their clients.
For more help and advice on what bridging loan funding can be used for is available from the team at The Bridge Crowd.