10 Reasons to Consider a Bridging Loan in 2019

Traditional High Street loans and mortgages are becoming increasingly difficult to obtain. Even where eligibility isn’t the issue, conventional loans rarely offer the convenience and flexibility today’s borrower needs.

This is precisely why annual bridging loan application volumes are accelerating like never before. The question is - what are UK bridging loans are being used for?

Or more importantly, when is a bridging loan a preferable alternative to a conventional loan or mortgage?

Detailed below, you’ll find the 10 most common applications for bridging loans as of 2019:

Individual Bridging Loan Applications

1. Avoiding repossession

Accessed at the right time, a bridging loan can be the ideal funding solution for avoiding repossession. Particularly given how bridging loans can often be accessed within a matter of days.

2. Purchasing properties at auction

If your dream home goes under the hammer at auction, why not snap it up at a bargain price? Rather than waiting weeks (or months) for a mortgage application to be finalised, a bridging loan can provide the fast access to the funds you need to avoid missing out.

3. Property upgrades and refurbishments

As far as urgent property refurbishment and improvement projects go, bridging loans can cover the costs with no delays or complex application processes. Whether you’re planning ahead or in need of urgent financial support, a bridging loan is always worth considering.

4. Capitalising on investment opportunities

Unbeatable investment opportunities often pop up at the worst possible moment. Rather than letting a once-in-a-lifetime investment slip through your fingers, a bridging loan can be used to capitalise on the opportunity.

5. Funding new business startups

If you’ve got a winning idea for a new business but lack the funds to get it off the ground, a bridging loan could help you take that important first step. After which, the loan can be repaid after a few months (or up to two years) when your business starts making money.

Business Bridging Loan Applications

1. New business opportunities

Time is often a factor when it comes to grabbing every beneficial business opportunity by the horns. When there simply isn’t time to raise capital the old-fashioned way, bridging loans provide an immediate cash injection for important purchases and investments.

2. Business expansion and diversification

Introducing new products and services or expanding into new territories can be pure gold for the proactive business. It can also call for accessible and flexible funding from a dynamic lending specialist. Bridging loans are ideal for smaller businesses looking to grow, expand and diversify their operations.

3. Property refurbishments

If your current workplace is fast-falling into a state of disrepair, the cash you need to fund an all-round refurbishment could be yours in days. All with a variety of flexible repayment options to explore.

4. Debts and unexpected outgoings

Even a modest interruption to your organisation’s cash flow can quickly lead to debts that need to be addressed as quickly as possible. You may also find yourself facing an unexpected tax bill, which could be quickly and easily covered with a bridging loan.

5. Relocation

Bridging loans are also ideal for covering business relocation costs, allowing you to grow your business, diversify into new markets and generally improve your output.

In a nutshell - a bridging loan could prove the ideal solution in any instance where a conventional loan or mortgage is anything but. For more information or to discuss your requirements in more detail, speak to a specialist bridging loans broker today – bridgingloans.co.uk

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.