Bridging Finance
The term "bridge loan" indicates it will bridge the borrower to the next transaction. It is a shorter term loan that will be used for interim financing until the following occurs: -
- The property is resold.
- The property is refinanced with a traditional lender.
- The property is renovated, improved or completed.
- A business has resumed or improved, or changed in a specific way allowing for permanent financial restructuring to occur.
We can either release equity from an existing property, or we can provide a facility to purchase a property (for example, in the case of a cash buyer at auction). We can provide up to 100% of the purchase price.
We can also "roll-up" the interest – meaning you don't service the debt during the "live period" – you simply pay off the bridging finance at the end of the contracted period, including the interest.