subscribe(at)bridging4u.co.uk      +44 (759)-976-2285

How companies can use bridging finance to grow their business

1/3/2017 12:00:00 AM   0 Comments   bridging loans, buy to let

Bridging finance has become an extremely popular source of finance in the UK for proprietors and businesses looking to raise finance.

In 2011, around £750m was borrowed through bridging and this amount has increased five-fold to £4bn in 2016.

The fast-growth has come as the result of stricter criteria from mainstream banks and the emergence of 40 bridging lenders who have created a competitive market in the UK.

What is bridging finance?

This is a type of short-term finance used where there is a strict deadline in place. Essentially, you are bridging the gap (of finance) in order to complete the deal. The other sources of finance are unavailable or would take too long, so rather than miss out on the opportunity, you apply for a ‘bridging loan.

The amount you can borrow typically ranges from £25,000 to as much as £25m, but because it is short term finance, the loan term is only around 3 months to 12 months (or sometimes 24 months).

The applicant must put some form of security down as part of the agreement and this is typically a commercial or residential property, or perhaps a stake in your business. Other types of security include cars, jewellery and art, although these are less common.

You are required to repay the entire loan and interest in full or you risk having your property repossessed. Borrowers have the option to repay their loans in monthly repayments, interest-only or rolling up the interest until the end of the loan term.

The loans are commonly settled upon the sale of a business or property and the borrower has received an injection of cash which they use to repay the loan.

Admin   http://startups.co.uk/how-companies-can-use-bridging-finance-to-grow-their-business/
Read Article


Recent Articles

News item number 65

Buy-to-let mortgages may cost £7k-a-year more as New Year crackdown pushes landlords to long-term deals

11/30/2016 12:00:00 AM - 0 Comments
Landlords will face paying an extra £6,700 towards their mortgages under a crackdown in the new year.
News item number 87

Rise and rise of bridging is way forward for property

3/3/2017 12:00:00 AM - 0 Comments
Evolving market has seen West One grow to a £50m-per-month lending business since the financial crash.
News item number 54

Bank of England given new powers to curb risky buy-to-let lending

11/17/2016 12:00:00 AM - 0 Comments
Treasury to give Bank ability to restrict size of loans amid concerns that sector may pose a danger to the financial system


  About

Bridging4U is a souce of information for property investors and buy to let landlords to keep up to date with what is happening with the property and buy to let bridging loan market and the latest trends.

  Recent Images
thumbs 34 thumbs 35 thumbs 36
thumbs 37 thumbs 38 thumbs 39
thumbs 46 thumbs 47 thumbs 48
  Contact Us
  Bridging 4 U

High Street,
Royal Wootton Bassett, Wiltshire. SN4 8FP.

Tel : + (0759) - 976 2285
Mail : subscribe@bridging4u.co.uk
Business Hours : 9:00 - 9:00

Copyright © 2015 - 4 You Media Ltd

Visitors: 281258