A commercial bridging loan is mostly a secured loan that is you may have to pledge collateral in this case. This collateral could be a property or other movable assets like shares and bonds. Since you are pledging a security, in this case, you will be accepted even if you have some bad credits associated.
These loans are short term loans as the borrower is given a very short period for paying it off. The time provided is short because the borrowers can easily repay the loan by selling his existing property. Here, the borrower will not have to wait for selling off the old property to buy the new one. These loans will provide the required amount. An amount ranging from £100,000 to £400,000 is being provided for 1 to 12 months.
For availing these loans, one must keep his existing property or the property to be bought as security. As these loans are secured in nature, it takes very less time in getting approved. Hence, a borrower does not suffer from the monotony of waiting for these too long. The rate of interest on these loans is higher as these are short term, and the lenders do so to be free from the risk factor.
You can have a bad credit record due to several reasons like bankruptcy , late payment, CCJs, defaults or arrears. Anyone with any of such credit records is being allowed in the commercial linking loans as for them to that loan to connection the transaction gaps is necessary. An MSc in Economics and Finance from the Warwick Business School is proof enough of the knowledge that she possesses in the field of finance.
Borrower has to pay interest only on a monthly basis. The loan amount may be repaid after property is sold out. That is after your property on sale is sold you can repay the loan amount completely as lump sum. If for any reason the property does not sell before the maturity period, make sure it will take the form of a conventional loan and no penalty will be charged.
The amount under commercial bridge loans ranges from £25000 to £3 million; depending on the value of the property, against which you take the loan. These are short-term loans, which you can repay in few months to a year. A good commercial mortgage officer can offer loans on a variety of commercial properties including apartments, retail, industrial, office, health care and mixed-use.
The process of applying for a commercial bridging loan is hassle free and is just like that of any other loan. What is advisable is to work with an experienced lender who is already familiar with this type of loans.
Ensure that before applying for the easy bridging loans, you have extensively searched internet for finding a suitable deal. You will be receiving the loan quickly and can save some money when you apply online. Commercial bridging loan is the best loan for business transactions of all kinds amount received can be used to used to fill the money gap that comes in between two deals.