Bridging loans and finance explained7th March 2017
What is a bridging loan?
Generally considered a form of short-term finance, bridging loans are ideally suited to supporting businesses during difficult or low cash flow periods. What makes this an attractive method of finance for many business owners is the repayment options.
Unlike most types of business loans, such as term loans, this allows you to either pay off the loan in full or transform into something much like a mortgage.
How does it work?
Unlike short term loans which are applied more commercially, bridging loans are better suited for short-term specific uses, such as a cash flow subsidy. As the name suggests, it’s a method of finance that supports and carries your business from one period to another.
What also makes this an attractive option is the time it takes to have the lump sum transferred into your account. With Rangewell, we can help source the ideal finance product for your business. By using our service, you could have a lump sum transferred directly into your account within 48 hours – or even sooner than that!
What is bridging finance?
This type of finance is typically used by business owners who are seeking either to purchase or renovate existing property. As such, it is also considered another form of property finance. So if you’re a business owner seeking to expand your facilities or customer reception areas, this is just one of many products you may wish to consider.
What makes it ideally suited to most business owners is that it’s short-term. Like bridging loans, when in discussions with a potential lender you will have to decide upon how to make the repayments. Either you can make full payment or you can turn it into something resembling a mortgage.
Rangewell are specialists in a wide variety of industries and, as such, we are ideally placed to source the ideal finance solution for the needs of your business.
Our values are simple – we’re on your side. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.
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