Bridging Finance
Bridging finance – a short term finance for necessary funds. Simply put, an urgent short term loan mostly used for business, mortgage or investment opportunities.
Bridging finance is useful when selling a property. There are a lot of costs involved and failing to pay them early could lead to many delays. Hence, this leaves the seller in need of urgent cash, or rather; this leaves the seller in need of bridging finance. Bridging finance companies can pay up to 80% of the costs involved before registration and transfer. In addition, the seller is able to access these funds immediately.
So are you eligible for bridging finance? If the loan is for business, property or investment purposes, then the answer is yes! Bridging finance is short term finance. At Cash Finance, secured loans have an interest rate of 2.9-4% per month. Over a short period of 1-12 months, our rates are definitely one of the lowest on the market (one of the many advantages of short term finance)!
The main advantage of bridging finance is to have access to funds fast and avoid delays, thus saving you time and money. The purpose could vary from home renovation to sudden investment opportunities arising. However, in return for this service, the fee can get iffy depending on the loan amount and the duration of the loan. Most other lenders will charge an interest rate of 3-5% per month for loans within 3 months, and even more if the loan is over a longer period. At Cash Finance, not only is our interest rate lower for short term finance, but the repayment options are flexible and clients can decide when they want to repay. Furthermore, clients are able to pay off the loan at any time without penalty.
Other scenarios for clients to turn to bridging finance includes (but is not limited to), legal purposes, bargain deals but currently doesn’t have enough funds, auctions (where funds are transferred right after the auction ends), bargain for bulk buying company products, when businesses feel the need to expand and need additional funds to fulfill their goal.
Even so, bridging finance should be considered carefully. You should weigh the advantages of relief from the immediate financial situation and the time saved against your ability to repay the loan. If you know you are able to repay the loan and you are able to handle the fees involved in short term finance, then bridging finance is the loan for you!
