This is a term that many people have probably heard of but may not know exactly what it refers to. Let’s face it, these days there are many different types of loans available so it is not easy to identify what each one actually does that is different from the others.
It is worth taking some time to look at what a bridging loan is as it could be very useful for many different situations and circumstances.
What is a bridging loan?
Quite simply it is a short-term loan but we are not talking about hugely inflated ‘pay day’ loans. This is a specific type of loan that is normally used as a short term bridging gap until either a transaction is completed or the sale of a property or development has been completed.
It is not used to get you from one pay day to another, it is used for a specific type of bridge gap.
It is probably better to think of it as short-term ‘funding’ rather than an actual loan. Unlike loans you cannot pay this back over a long period of time and it is meant to be a stop gap for either personal liquidity, business liquidity or even personal or commercial real estate acquisitions.
There are many different types of bridging loans but generally it is agreed based upon a pre-defined set of terms and the payback term can be anything from 2 weeks to 2 years, depending on the requirement and risk etc.
There are many finance companies that offer loans but when you are talking about such a specific type of loan, credibility and track history are important to you for many different reasons, especially reliability and speed of decisions and finance.
One company that has a great reputation is Bridge Help based in London. The only specialise in bridging loans so if you need to find out more, just visit their website bridgehelp.co.uk
