Originally written by fundingoptions on Small Business
If you require a short-term business loan to get your business from A to B, bridging finance might be just the thing you need. Use Funding Options’ bridging finance calculator to find out how much you may be able to borrow in the form of a bridging loan. We’ll ask for some basic information on how much you want to borrow, when you need the funds, what the finance is for (e.g. “property finance”) and your email address so we can provide you with your bridging loan quote.
Some business owners are unaware of the benefits of bridging finance and others are unsure of what it’s actually for. Read on to find out more about this unique type of business finance.
>See also: Common uses for bridging loans
What is a bridging loan?
Bridging loans are designed to “bridge a gap” in finance. Bridging loans can often be quicker to obtain than term loans; in some cases the funding can be ready in 24-48 hours. There are two main types: closed and open.
Closed bridging loans have a fixed repayment date (within a few months) whereas open bridging loans have no fixed repayment date, however lenders usually expect repayment within a year.
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Which type of bridge financing is right for your business?
by Partner Content • • 0 Comments
Originally written by Partner Content on Small Business
The idea that bridge financing can only be used to purchase or renovate property is a common misconception. In fact, businesses can utilise bridging loans for a wide variety of purposes.
Bridge finance can prove useful when your company is in need of a speedy cash injection. It can be used to help you meet finance obligations in the short term and provide a vital cash flow boost while you wait for longer-term funding to become available.
As with any business loan, you’ll have to meet the lender’s eligibility criteria. You’ll also be asked for your business plan and exit strategy when you apply for bridging finance.
>See also: Exploring finance: How appropriate debt choices can fuel ambitions
Let’s take a look at the different types of bridging finance available today:
Closed bridge loan
A closed bridge loan has a fixed repayment date, which is usually a few months after you receive the finance. As the lender has a higher level of certainty in terms of when the loan will be repaid, closed bridge loans tend to be more accessible.
Open bridge loan
Open bridge loans, on the other hand, have no fixed repayment date. This can make them more suitable
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Bridging loans bounce back following Brexit blip
by Owen Gough • • 0 Comments
In the wake of the Brexit vote which took the majority of investors by surprise, bridging lending in the UK suffered a rather unfortunate dive. However, confidence appears to be increasing once again, as reports confirm a significant increase in bridging lending to £4.2 billion in April. The latest bridging index suggests that the damage
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