Providing Capital On Short Notice
Bridging allows business owners and developers to access funds and raise capital within a short period of time giving them financial breathing space. Although not always the cheapest process, it’s often necessary when under time pressure.
Whether you need to purchase property quickly, consolidate debt, provide funding for court cases or seek a business cash injection, we can organise tailored solutions for our clients through our strong long-standing relationships with Bridging Lenders.
Fast DeliveryAccess To Whole MarketCompetitive PricingRetained Or Serviced Interest
Is Bridging Finance a Good Idea?
Absolutely. Bridging finance serves as a versatile and effective solution for short-term financial needs. Whether you’re navigating property transactions, bridging gaps in cash flow, or seizing time-sensitive opportunities, a bridging loan can provide the necessary flexibility and speed to meet your immediate requirements.
What are the risks of a bridging loan?
While bridging loans provide quick access to funds, they come with risks. The primary risk is the short-term nature of the loan, which means higher interest rates. Additionally, if the exit strategy (repaying the loan) fails, borrowers may face financial challenges. Adequate planning and a clear repayment strategy are crucial to mitigating these risks.
Is it hard to get a bridging loan?
Compared to traditional loans, bridging loans are relatively easier to obtain. Lenders focus more on the value of the property being used as collateral and the exit strategy than on the borrower’s credit history. However, meeting specific requirements and providing a clear repayment plan is crucial for approval.
What is a typical interest rate on a bridging loan?
Interest rates on bridging loans can vary but generally fall between 0.5% and 1.5% per month. The rates may be higher than those of traditional loans due to the short-term and higher-risk nature of bridging finance. For a free quotation get in touch with our team.
How long does a bridging loan take to approve?
Bridging loans are known for their quick approval process, often taking a few days to a few weeks. The expedited approval is one of the primary advantages of using bridging finance for time-sensitive transactions.
Maximum loan amount for bridging
The maximum loan amount for bridging finance depends on various factors, including the value of the property or asset used as collateral. Pronto Management Consultants Ltd works closely with you to assess your needs and determine the maximum loan amount that suits your requirements. As a crude rule of thumb you can expect a gross loan of 75% LTV for residential property – 65% gross for commercial property. LTVs will vary depending on the proposed security and your financial background.
Do bridging loans check credit scores?
While some lenders may consider credit history, bridging loans typically focus more on the value of the property used as collateral and the borrower’s ability to repay. As a result, individuals with less-than-perfect credit may still be eligible for bridging finance.
Do you pay a bridging loan monthly?
Bridging loans can either be serviced monthly from cashflow, have interest fully retained or in some cases added to the loan so there are no monthly repayments, or have a hybrid structure between the two. In all cases, the principal amount will need to be repaid at the end of the loan term. Therefore, it is important to have a solid exit strategy lined up from day one. Pronto Management Consultants Ltd structures repayment plans that align with your financial capacity, providing flexibility and ensuring a manageable repayment process.
What's the alternative to a bridging loan?
Alternative financing options include:
- personal loans
- lines of credit
- traditional mortgages
These might be suitable depending on your needs but it’s essential to compare the terms, interest rates, and repayment structures to determine the best fit for your specific situation. Not sure what to pick? Get in touch! We can run through all the options available to you and find out how to get your business to the next step.
Is a bridging loan right for me?
Determining if a bridging loan is suitable involves assessing your financial situation, understanding the purpose of the loan, and having a clear exit strategy. Consulting with financial experts such as us can provide valuable insights to help you make an informed decision.