THE DIFFERENT
TYPES OF BRIDGING LOANS
1. Pension Bridging: If your
pension is due to be paid out and you need the money
earlier.
2. Estate Agents Commission Bridging: The purchaser has
arranged his bond or finances for the purchase of a property
and the attorney is in a position to issue a Letter of
Undertaking that the funds are secure. Both seller and
purchaser have signed all relevant docs and transfer of
property is the next step. With the consent of the Principle
Estate Agent, an agent can have and advance on a portion of
the commission due on the deal.
3. Invoice Bridging (Discounting): Only after the client has
delivered the goods or performed the service, can an invoice
or many invoices be bridged (advance payments made). In the
case of where there is a confirmed order for goods (not
services) and the client has not got the money to purchase
the goods for his customer, then a bridging facility is
possible; subject to due diligence.
4. Equity Release (Property): If a client owns a property
and there is “free” equity in the property, then up to 80 %
of this equity can be released within 10 days subject to
certain conditions. This is short term lending of up to 9
months maximum.
5. Mezzanine Finance / Developers Finance: Developers that
own land and need to get funds released to go ahead with
development can have access to mezzanine finance. The land
is used as security and equity released to the client.
6. Sellers Proceeds: A client has sold a property for a
profit. A percentage of the profit can be advanced to the
client so long as the attorney handling the transacting is
in a position to give a Letter of Undertaking that the
purchaser has placed guarantees in place (bond or security).
7. Humanitarian Projects: Where schools, hospitals, clinics,
housing and any sort of project are needed to assist the
underprivileged (Projects have to be feasible and
realistic).
Apply for a Bridging Loan
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