Bridging loans for Commercial use.
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by: Tom Sangers
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What are Bridging Loan and how they can be used.
At General Finance Centre, we offer our clients flexible finance solutions to our customers, so they can secure the business premises they need with the commercial Mortgages which is right for them.
On occasion, we can also offer business finance for 100% of the purchase price (or 80% of the property value ,whichever is lower) in the form of a closed commercial bridging loan. Closed bridging loans can obviously only be offered to those applicant who have exchanged. We can also offer open commercial bridging loans (available before completing) for up to 75% of the property value.
Bridging Loan is a type of loan that is used to cover shortfalls between buying one property and selling another; or to cover businesses between funding shortfalls.
A good example of when you might need a bridging loan would be if you're poised to buy a new property but are let down on the sale of your existing one. therefore to buy the property or commercial property you are looking for you will often need a Bridging Loan to cover the time period from selling your first property.
It's basically a very short term commercial mortgage Like a mortgage, it's a loan that is "secured" against property
Bridging loans available from £30,000 to £10,000,000
Non status or Self Certification facilities are available to customers without income proof
Credit problems such as mortgage arrears, loan defaults or county court judgements are sometimes accepted
Offer of loan maybe released within 24 hours upon receipt of full application form, valuation reports and financial information.
Example of a recently completed commercial bridging loan:
1) The client purchased commercial investment property at £3,750,000.
2) The sale is negotiated with a third party to complete in three months time at £6,600,000.
3) 100% of purchase price (£3,750,000) was approved by the bank at 4% over base rate.
Call us on 0800 019 5178 or complete the enquiry form on this page to find how we can help. Remember, whatever your business or status, our aim is always to say yes.
About the Author
I write for and behalf of General Finance Centre
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