If you are looking for a bridge funding partner for your financial needs, then the Bridgecrowd should be on your shortlist.
That’s because our process for delivering large sums of money is quick and flexible and tailored to your own needs.
In addition, our offering is transparent.
We offer peer-to-peer bridging loans which are secured on UK property and we can offer loans ranging from £25,000 to £2 million.
Among the reasons for using us are to enjoy interest rates from as low as 0.75% per month, which equates to 9% per year.
The interest rates, like all bridge funding, vary depending on how long you need a loan for, what your repayment plan will be and the loan-to-value (LTV).
The only upfront fees necessary are for the valuation costs of the security which will be paid directly to an approved surveyor.
Your bridge loan application being approved within 30 minutes
Also, our professional offering will see your bridge loan application being approved within 30 minutes of being made and completed, for existing clients, within 24 hours.
The application process can take between five and 18 days and a lot depends on the solicitors you use to deal with the legal paperwork which is why it is recommended that you use solicitors who have experience with bridging finance and can process the papers quickly as a result.
On average, our new customers will see their bridge funding application being completed in 10 days but it is possible to access the funds more quickly.
While there are many purposes for accessing bridge finance, borrowers can opt to choose their interest monthly or decide to pay when the loan falls due, this is known as ‘rolling up’.
Among the purposes for individuals and businesses to access bridging finance is to purchase a property for development, particularly those properties that will not attract a mortgage, or to buy a property at auction.
There’s also a trend for firms to use bridging finance to cover a shortfall in funding; this is when bridging finance can be appreciated since the firm’s money will run out before there is an infusion of funds.
A bridging loan
Essentially, a bridging loan is being used to fulfill the company’s short-term working capital needs.
Other firms may need to use money to refurbish their premises or to buy stock for a promotion.
Another major attraction for firms and individuals to access bridging finance is that the application process is not only quicker but it’s also less stringent than that being used by high street lenders.
For example, if you want to purchase a property then you could access a loan to value of 70% or less. Some bridging loan lenders may offer an LTV of up to 95%, depending on the security, and the interest rate will be much higher as a result.
In the case of the Bridgecrowd, there are no set criteria about those we are willing to lend money to. There’s also no need to prove income and there are no broker fees to pay either.
Also, the types of property that a bridging finance firm will lend against will include commercial and residential properties and developments and also mixed-use property schemes.
Borrowers can also put up land, farms and agricultural property as well as retail outlets and offices as their security for a bridging loan. Along with using bridging finance to fix a business cash flow problem, other borrowers are using the money to pay their tax liabilities or settle a divorce quickly.
Other funding applicants will use the money to refurbish or renovate commercial, residential and buy to let properties.
Loan purposes for bridging finance
The loan purposes for bridging finance are wide and varied and different lenders will have different criteria so it’s also worthwhile shopping around to find a potential lender who will meet your needs and with a reasonable rate of interest.
The length of a bridging loan can also vary, depending on your circumstances and the lender’s criteria and, for example, the Bridgecrowd will loan money for between one month and up to two years. Generally, most lenders will lend money for up to one year.
Finally, if you or your business is seriously considering bridging finance to meet a short-term need, then you will need to appreciate what your exit strategy is going to be.
This means you will know when and how you will repay the loan so this may mean selling the property being put up as security or another property, or remortgaging the property that the bridging finance helped to buy – for example, developers can use bridge finance to develop a property into a condition that will attract a mortgage by adding a bathroom.
There’s also the issue of raising money from the business or the selling of shares. The various ways and means to repay bridging finance include the traditional form of repaying the funds by using the proceeds from selling a current property after using the finance to buy a new property.
If you are interested in bridge funding and want to work with experts in the field, then you may have other questions not covered here which is why you should consider using the Bridgecrowd for your alternative financing needs.