Bridging loans may sound new to some people. Some may have some confusion regarding this. The name bridging loan itself suggest that it is a short fulfilment of some financial requirement. When there is some dream to fulfil something and there is short of money at the peak time, this can be utilised. But one must know about the advantages and disadvantage of this loan before getting it.
There are many loans which are designed for the purpose of fulfilling the human desires and achievements in the life. These may include housing loans, personal loans, educational loans, business loans and many others. But bridging loans are slightly different from those other set of loans. Let us see some of the conditions of these loans:
The interest rates of the bridging loans are very high when compared to other loans.
Generally this is best for the real estate purposes such as buying a property.
People with any financial status are eligible to apply for this loan. This includes students, retired persons, working professional, business men, homemakers etc.
The bridging loan can be repaid completely at any time.
But this should be anyhow repaid within 12 months from the date of issuing the loan.
The loan can be obtained easily. It is not much difficult and do not involve much time taking process as other loans does.
The purpose of the loan should be stated clearly before obtaining it.
The interest rates are set according to the market value of the purpose.
If collaterals used are so strong 100% of the market value can be easily obtained as funding. With these properties one can get to know the limits of the bridging loans. One should opt for this loan only when it is very essential.
This must be kept as a last option. The purpose of obtaining the loan should very strong that it is really very essential like to keep business running, to get a property, when money is immediately needed. When this is used for other silly reasons then definitely the person would go in loss.
There are many types of bridging loans like closed bridging loans, open bridging loans, auction bridging loans, extended bridging loans, large bridging loans, second charge bridging loans and so on. One must get clear about which he needs to get and which would suit and beneficiary for him. After getting a clear idea from all the above mentioned facts, a person can go forward in getting such loans.
Commercial Acceptances is one of the largest and most respected short term bridging loan specialists. We enjoy a reputation for the quality of our service from initial enquiry through to repayment of the bridging loan.