The usefulness of short-term finance is growing among businesses as well as individuals and property investors so here’s some information about what short term bridging loans UK are.
There is no doubt that despite this growing popularity that more people who are unaware of the flexibility and benefits of bridging finance would do well to find out more.
The purposes for this short term finance are wide and varied and while many people may still think that they are only used for buying a house while waiting for a current property to be sold should know they can be used for so much more.
For one thing, property developers can use a bridging loan for buying property at auction and they can also access funds for redeveloping a property to sell it on and then repay the loan.
Businesses accessing short term bridging loans UK
There’s also a growing trend of businesses accessing short term bridging loans UK so they can purchase stock for a particular campaign, for instance, or to buy or renovate premises.
Other uses for a bridging loan include raising capital or dealing with a financial emergency while businesses could also use them to meet their obligations and settle tax liabilities.
This means there is a growing number of people they are suitable for and along with homebuyers bridging finance is also a popular route for landlords looking to develop a portfolio, property investors and developers as well as house builders.
Essentially, anyone interested in short term finance will find a lender willing to meet their needs because there are a growing number of lenders entering the market.
Most lenders offer a bridging loan calculator
In a nutshell, a bridging loan is a form of finance that runs from a month and up to two years; most people generally access bridging finance for 12 months and most lenders offer a bridging loan calculator to help a potential borrower determine whether this type of short term financing is for them.
The idea is that the loan is used as a ‘bridge’ between buying something and receiving funds to pay for it.
In addition, bridging loans are usually quick to organise and offer flexibility for the borrower who may be looking for a financial boost in the short-term.
For anybody looking for quick access to a large sum of money and cannot wait for the several months it may take a high street lender to complete an application process, then bridging finance is the answer.
For more help and information about short term bridging loans UK, then contact the helpful team at The Bridge Crowd.