Understanding Bridging Finance
Bridging finance, also referred to as "bridge loans" and "bridging loans", have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word "bridge" conveys the fact that the loan is designed to get you over a temporary obstacle. A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.
Bridging finance almost always requires that you pledge some sort of collateral as security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape.
The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more.
In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business..
Commercial Lifeline http://www.Commercial-Lifeline.co.uk are Commercial Mortgage and Bridging Finance specialists.This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is included, and that the links above are intact.articles@commercial-lifeline.co.uk1031 Exchange
Do you have your savings in an investment property that is not performing for you? Perhaps you are positioned to make capital gains on the property but for whatever reason the property just doesn't fit your investment scheme, yet you are unsure how to get out of the property without paying taxes on the capital games.
If this is the case, then it is time you learned about the or a 1031 exchange and a commercial bridge loan.
In a nutshell a 1031 exchange will help you avoid taxes on the sale of the property so long as you are willing to reinvest the money in a similar property and the bridge loan will help you close quickly on your next property.
The term 1031 exchange comes from the Internal Revenue Service's dictionary.
The 1031 exchange basically outlines the scenario whereby you can sell your real estate property and avoid any taxes on the capital gains.
As always,...
1031 Exchange
Financing > 1031 Exchange
Loans are Not Only for Homeowners, Get Tenant Loans
Loan market is increasing with increasing cost of living. Earlier it was believed that if you own a home there are better chance for getting a loan. This is not a false statement; yes your home can get you better deals. But what about those people who are living as tenants and lacking anything to offer as collateral. Are they left out from the race of getting a loan?.???.
No they won't?..with the arrival of tenant loans, popularly known as unsecured personal loans, you can apply a loan without offering anything as security.
Tenant loans are loans for you personal needs like debt consolidation, business financing, and education, health, buying property, boat, car and other such personal needs. The best thing about these loans is that you don't have to mention the purpose of the loan to the lender. You can use the amount the way you want to use it.
Tenant loans give you the freedom...
Financing > Loans are Not Only for Homeowners, Get Tenant Loans
SO YOU'RE THINKING ABOUT FINANCING A BOAT...
Once you've made your decision to buy a boat the first thing that usually crosses your mind is, "How am I going to pay for it." The majority of purchases involve some level of boat financing, whether it's a credit line through the home, an unsecured loan, or a conventional boat loan. Choosing the right financing source can be as important as choosing the right boat.There are several factors to take into consideration when choosing a boat finance source. The first might be to determine how long you intend on keeping the boat. If you are purchasing an entry level first boat, it will make sense to find a boat loan that will be flexible in the event of early payoff through a private party sale or trade-in. Conversely if you are purchasing the boat of you dreams and expect to have it for a long time it will be important to lock in at a fixed rate loan with terms that will allow the comfort of a low monthly payment.
This will allow you to make sure the boat will always be affordable...
SO YOU'RE THINKING ABOUT FINANCING A BOAT...
Financing > SO YOU'RE THINKING ABOUT FINANCING A BOAT...