How to Survive an Unexpected Financial Crisis
Financial issues are the last thing you need when trying to make a business transaction. Whether you’ve secured something at an auction or you’re trying to hold your place in a sales chain, a last minute financial crisis can throw a major spanner in the works. Financial crises like these can leave you without the capital you need to complete your purchase, costing your business dearly, and at times like these it’s important to know which options are open to you. One such option which can give you immediate access to vast amounts of capital on a short term loan is what is known as a bridging loan.
A bridging loan is a sum of money lent by a bank to cover the time period between your initial transaction and the one which will free up the capital you need. Generally speaking, these loans are typically used in the interim period between buying one house and selling another – something which is becoming increasingly popular in London over the last few years. This being said, these loans aren’t simply used for property sales – they can be used for anything from business expansion and cash injections to simply stopping repossessions from happening. As such, if you find yourself, for whatever reason, needing a bridging loan, your first step should be to get in contact with a bridging loan expert, such as Georgia Galloway from Finbri. Experts such as this will be able to guide you through the intricacies of bridging loans and their application process, helping you to secure the funding that you so desperately need.
One of the main benefits to taking out a bridging loan is that you can immediately free up anywhere between £100,000 and £1bn. This is especially useful when trying to survive an unexpected financial crisis as they can make use of any available equity you have to secure the loan. Whether you have a low credit rating, no proof of income or even if you only need the money for a single day, these bridging loans can help you get from A to B without risking your company going under. These short term loans are only ever suitable for anyone looking to borrow for less than two years though – they won’t work well as a long-term financial solution.
One of the problems of being in crisis mode is finding that your properties have devalued. Fortunately for people looking to take out a bridging loan, you often don’t need a valuation on your property to free up this capital. These loans can even be taken out against properties which are otherwise unmortgageable, whether it’s a building that’s currently in use, an old dilapidated property or simply a piece of land. While these might fall short of the requirements put in place by traditional lenders, bridging loans work as a short-term alternative intended to help you pay those taxes or debts you may owe or buy that property you’re dreaming of. When push comes to shove, you can avoid filing for bankruptcy or you can purchase that bargain that could save your business in the long run, all with a bridging loan.
Unfortunately, as with any loan or mortgage, there are a number of different loan providers offering a range of different fees and interest rates. The cheapest way of finding the best bridging loan for you is almost always through a broker who specialises in this corner of the market – just as you would if you were looking to find a standard mortgage. By using the right bridging loan broker such as KIS Bridging Loans you can rest assured that you’re finding the best possible interest rates on your borrowing.
