At Snowball Alternative Finance we look to offer our clients flexible funding options which allow them to be nimble in business.
Bridging Finance does what it says on the tin – it ‘bridges’ a gap whilst other longer term finance is arranged or before another property asset is sold.
The appeal of bridging finance is that it is fast to arrange and typically comes with flexible lending criteria.
You can usually have access to relatively large sums of money in a matter of weeks but the funds will only be available for a short period of time, usually three to 12 months but some lenders will offer up to two years.
So, a bridging loan is quick to arrange but it is vital that there is an exit route for the client. Bridging finance is relatively expensive, especially if required for a long period of time, and therefore it is imperative that the client knows what the exit will be and when that exit will be. Otherwise it can become an expensive option. Working out the exit and the implications for the client is a key part of what we do.
Bridging deals are always secured on property assets and these assets may be residential, commercial, industrial or in some cases just land.
Bridging finance is used in property development and investment projects where deals needs to be completed with speed and where conventional funders would not be able to act in time. Or it could be where there are a number of property assets in place and cash is tied up in those assets and need to be accessed for another deal to happen before that asset can be sold or refinanced on a long term basis. It can be used for purchases, refinancing, auctions, refurbishment, investments and for funding for developments.
If you are looking for help or advice with bridging finance, please get in touch.