What is a Commercial Bridging Loan?
A bridging loan is essentially a short-term loan that is often arranged within a short time-frame and may be made to an individual or a company and secured against residential or commercial property. A commercial bridging loan can be used to cover building a ouse for a short period of time.
The defining characteristic is that it is a loan that bridges the gap to an exit, which is usually a refinance or a sale of the asset. Richmond Asset Finance has helped hundreds of customers in Leeds and surrounding areas getting bridging finance for their projects, so do give us a call if we can help you.
Why use bridging loans?
The main reasons that property professionals use bridging loans are:
- To raise finance quickly
- To refurbish a property
- To finish a development
- To buy at auction
- To purchase property that would not secure a mortgage in its existing condition with a mainstream lender
- To bridge a shortfall of funding between buying and selling property when a sale is delayed
- To raise a deposit for purchasing property (commercial and residential)
Does Richmond Asset Finance charge a fee?
A fee is usually charged by the lender for providing the facility and is typically two per cent. In most instances it can be rolled up into the loan.