Bridging loans are a short-term finance solution that is specifically used to quickly remedy cash flow issues within a business or for business-related purchases.
Rather than being based on income and credit scores like traditional loans and mortgages, bridging loans are asset-based and are most commonly used for property development and property investments.
Unlike more common loans and mortgages, bridging loans are processed and completed in a much shorter timeframe. A bridging loan application is typically completed within a few weeks, however, here at Velocity Bridging, we complete bridging loan applications in just a few days.
What are the common delays when applying for a bridging loan?
Although we do everything in our power to ensure your bridging loan application is completed within 3 working days, there are some factors that can affect the speed of the application.
To ensure that your application goes smoothly, we recommend that you:
Have a strong exit strategy
A strong exit strategy that clearly defines the way you intend to pay back, or exit, the loan will instil confidence in lenders and help move your application forward faster.
We recommend having a backup exit strategy that makes sure all variables are covered.
Have your documents ready
After the loan in principle offer, we’ll begin working on the underwriting process. This often requires input from the borrower.
To make sure the application process is as fast as possible, it’s important to respond quickly to our enquiries.
Keep communication open
We’re a chatty bunch here at Velocity, and we like to make sure we communicate with you openly and frequently to ensure you’re kept in the loop. When applying for your bridging loan, make sure to keep your phone and emails nearby should we ever need to contact you.
Bridging loan application process
We not only pride ourselves on providing the fastest bridging loans on the market, but we also want to make sure we provide the easiest application process.
The first step to making your bridging loan application is getting in touch. Whether you have questions prior to completing the application form or want to discuss the application process, we’re here to help you.
Upon application, we’ll review your enquiry and make an initial assessment of your application and loan requirements.
Within 2 hours of you sending your enquiry, we’ll send you a decision in principle (DIP) along with some document you’ll be required to complete – it’s really that quick!
Once you’ve accepted the DIP and sent back the enclosed documents, we’ll instruct our solicitors to begin working on the legal steps to complete your bridging loan application.
This step in turn will be the start of our due diligence process. Our Lending Director will also inspect the property personally at this stage of your application.
After this has been completed, this will be the end of the underwriting process and the application will come to a close. This then signals the completion and success of your bridging loan!
It’s really that simple! To get started on your application, fill in our easy online application form.