FINANCE SOLUTIONS
Bridging finance could be just the solution you need to secure and complete your next property investment project.
So, what is bridging finance? Bridging Finance is a short-term loan that can be used to bridge the gap between when you need money and when you expect to receive a larger sum of money. In other words, Bridging Finance is a short-term loan, typically lasting 3 to 12 months, covering the period between one property-related transaction and another. Quite literally, it “bridges the gap”.
A need for bridging finance may arise when the purchase of one property needs to be completed before the sale of another one is finalized. In property development or investment, bridging finance is generally used as an interim facility to quickly secure the property or generate cash flow while other finance is put in place.
For example, a property investor may want to take advantage of a purchase opportunity at auction. Her intention may be to refurbish the property for commercial or residential letting. Bridging loans from Kinetic Finance can be used in the meantime to complete the purchase and undertake any refurbishment. The bridging loan is repaid – depending on the loan terms – once long-term finance is secured, or in some cases when one of the properties in the transaction is sold or refinanced.
Kinetic Finance offers a flexible, short-term facility that could be vital for moving your property development project from one stage to the next. The added advantage is that the money can usually be arranged quite quickly. At Kinetic Finance, we offer a wide range of bridging finance solutions to meet your individual needs.
For a discussion regarding bridging finance funding options, contact us to discuss your requirements with our professionals.
Purpose: Secure a property purchase quickly, generate short-term business cash flow from an existing property, fund refurbishments and use as pre-construction finance.
| SECTOR: | Commercial Only |
| CHARGE: | 1st charge only |
| FINANCE: | £100k to £1m |
| FINANCE TO VALUE: | Up to 75% |
| RATE: | From 1% per month |
| ARRANGEMENT FEE: | From 1% |
| APPLICANT: | UK and non-UK residents and companies |
| TENURE: | Freehold or leasehold |
If you are interested in learning more about bridging finance or applying for a loan, please contact Kinetic Finance today. We are here to help you achieve your financial goals.
Bridging finance can be beneficial for individuals or businesses in various scenarios, including property buyers who need quick funding for real estate transactions, property developers looking to secure properties before obtaining construction financing, and businesses needing immediate capital for expansion or operations.
The speed at which you can secure a bridging loan depends on the lender's processes and your application's complexity. Some bridging finance companies specialize in fast approvals and disbursements, often within a matter of days. Having all necessary documentation and collateral ready can expedite the process.
When choosing a bridging finance company, consider factors such as their reputation, experience, interest rates, loan terms, speed of approval, and customer reviews. It's wise to compare multiple options and seek advice from financial professionals if needed.
A bridging loan is designed to provide interim financing until a more permanent source of funding becomes available. It's often used in real estate transactions where a buyer needs quick capital to secure a property before selling an existing one. The loan is secured against the property being purchased or another valuable asset, and it's repaid when the borrower receives the anticipated long-term financing or sells the property.
The regulation of bridging finance can vary by jurisdiction. In many places, they fall under the regulatory framework for lending or financial services. It's important to work with a reputable bridging finance company that operates within legal and ethical boundaries.
