Bridging loans are an alternative source of property finance for both the property sector and the business community alike and can open many doors – to support you when you most need it.
There are a number of reasons why borrowers need a bridging loan and we’ve come up with three of the most common in our experience.
To aid a business slump
In every business there is a decrease in transactions at one point or another; there are a number of reasons why companies see a plummet in sales – it could be seasonal, economy-related or it could be just an anomaly.
The impact of Covid, in particular, continues to strain businesses and their finances and that’s why many are turning to a bridging loan to help their current predicament.
In this case, a bridging loan may help to resolve the temporary decrease in cash flow or help purchase equipment and stock so businesses can continue operating as usual.
Businesses often need this money quickly and with three day turnarounds, Velocity Bridging is well-positioned to assist.
If your deal falls apart at the last minute
Unfortunately, it’s not uncommon for borrowers to go through the motions with a lender only to have the deal collapse right at the end. The financial consequences of this can be severe.
Velocity is on hand to assist these borrowers with our ultra quick completions.
Buying property at auction
There are many benefits to be had when buying a property at an auction, often the property in question can be purchased at a reduced price and there may be less competition than if it had been advertised on a mainstream property website.
When purchasing a property at auction, you need to ensure you have 10% deposit available as this secures the property immediately. Afterwards, you will need to pay the rest of the funds within a 28 day period.
Unfortunately, a mortgage application can often take more than a month to process. That’s why people turn to a bridging loan, as these can be completed much faster.
With a Velocity bridge, you can have the money in your account in three days giving you the chance to get stuck in renovating the property quicker.
If you need a bridging loan for any of these reasons, discuss your requirements with Velocity Bridging on 01704 339588 or email info@velocitybridging.com to get a tailor-made loan directly for your purposes.