Convenient Finance for Inconvenient Situations

By: Gracy Bonsu

It happen sometimes that a larger or longer-term financing is pending due to which one or two transactions done by us become dead. This situation may arise with an individual or with any business. You may want to acquire a new business deal but you are waiting for the clearance of your previous consignment for getting cash-flow. You may have seen a new apartment and want to buy it, but you don't have much cash and you want to get cash by selling your old house. These two situations are different but one factor is common in both of them-in both the cases one transaction is dependent on some other transaction. There is only one solution for such situations that both the transactions implement on the same time. In the present financial environment it can never happen. To deal with the situation like this you have a solution in the name of a bridging loan.

Bridging loan or bridge loan or swing loan is a short-term loan. It is an interim finance for an individual or business unit. The financial institution can arrange for the fund until the next stage of financing can be obtained. This loan can be repaid once your pending transaction implements. This is the benefit of this loan. The bridge loan really acts as a bridge between two transactions and it fills the time gap between the two. Nowadays bridging loans are mostly used for commercial real estate purchases. It helps to quickly close a property deal. The loan also can save a property from foreclosure, i.e., the legal proceedings initiated by a creditor to repossess the security for the loan that is in default. Through bridge loan the borrower can take advantage of a short-term loan in order to secure a long term amount.

There are many advantages of these bridging loans. The main advantage is that, it can be approved within the same day of application. The loan amount gets deposited to your bank account. You can purchase the property or you can go for new a business deal without waiting for some other transaction. These loans are secured in nature. Under these loans you can get big amount of money in short time. These loans come with a shorter repayment period so they have a relatively higher rate of interest. Mortgage bridge loan is available with many lenders. Some of the best and attractive deals are offered by online lenders. You can check various factors related to these loans. You are advised to compare various mortgage bridge loan schemes from the convenience of your home and choose the best option for you.

Finance
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