Checklist provided by
Brooklands Commercial Finance
A bridging loan can help during the following circumstances:
• Auction Purchases
• Site acquisition pending planning
• Repairing a broken property chain
• Assist cash flow
• Purchase uninhabitable property
• Speedy purchase of a property
They can be useful as they can be arranged in a matter of days as opposed to a matter of weeks or months.
Bridging loans are for short term finance and are typically available from 1 day to 18 months.
Due to the complexity of bridging finance and the vast array of lenders, it is prudent to use the services of a commercial finance broker. They should ensure that there is Clarity, Transparency, Speed and Flexibility.
|Is the broker FCA regulated?|
|Is the broker a full member of the National Association of Commercial Finance Brokers?|
|How much do you want to borrow?|
|What is the security that you will be giving the lender?|
|Do you want to service the interest or have it rolled up and paid at the end?|
|What are the lenders arrangement fees and interest rate?|
|Does the lender charge an exit fee?|
|What are the valuation and legal fees?|
|Is there a minimum term?|
|What is the exit route (How will the lender be repaid)?|
|Is the borrower going to be a limited company or an individual?|