If you are looking for a short-term loan to bridge the gap between two longer-term loans, then you may be interested in bridging finance. Bridging finance is a type of short-term loan that can help you cover expenses or make a purchase before you have the money to do so. It is a popular option in Australia, where there are many lenders who offer this type of financing.
Bridging Finance Loan
Bridging finance is a loan that typically covers the period between two existing loans. This type of financing can help bridge the gap when you need to borrow money quickly and don’t have enough funds available yet. It can be used for bridging the gap between obtaining finance or bridging the gap while waiting for long-term debt funding to come through, such as bridging to buy a house before selling another property.
Percentage
The loan amount is usually a percentage of your current assets, such as property or shares. The lender will assess your financial situation to determine if you are eligible for bridging finance and how much they are willing to lend. You usually need to repay bridging finance within 12 months but this time frame can vary depending on the lender.
Consider These Factors
Bridging finance is a convenient and flexible loan option for those who need access to quick finance. However, it is important to consider all the factors before taking out bridging finance, such as interest rate, repayment terms and fees associated with the loan. It is also essential that you understand how bridging finance works and what implications it could have on your credit score.
Overall, bridging finance can be an excellent solution if you are in need of immediate financial assistance while waiting for longer-term funding to become available. Make sure to research different lenders and their lending conditions so that you can find the best bridging loan deal that suits your needs.
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