| |
The number of loan options available is daunting especially when you don’t know what they actually mean. So what is a commercial bridging loan?
A commercial bridging loan is a short term loan that provides a cash lump sum (capital) to purchase a property or land.
It is useful for those building a property empire as some lenders do not ask for proof of income and even if you have a bad credit report you can get credit.
Most lenders offer advances up to £10 million and a term ranging 1 – 36 months, whilst this all sounds great it is important to remember this is a secured loan, meaning if you fail to make repayments you could face court proceedings and repossession.
An expert on bridging loans commented they are fantastic for property developers and those who know within a few months that they will be able to repay the loan amount fully. Those who do not have a solid timeframe should consider other financial options.
|