Everything You Need To Know About Short-Term Bridging Loans

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Abo u t U s

PFN Finance specialises in all elemen t of comme r cial finance f u nding . As independen t comme r cial b r oke rs we have access t o a la rge range of Bank s , B uilding Socie t ie s , Finance Houses and Speciali st lende rs .

O ur staff have a w eal t h of kno wledge and expertise in B uilding A P r ope rty Po rt folio in this s ec t o r w i t h an excess of 35 years of e x pe r ience . O ur kno wledge of t he ind ustry makes us v e ry a wa r e t ha t poo r l y r e s ea r ched o r p r e s en t ed applica t ion fo r m a r e v e ry of t en comple t el y r ejec t ed fo r t he wr ong r ea s on s . We use o ur kno wledge t o app r oach an app r op r ia t e lende r fo r t he pa rt ic u la r case. This pro vide s t he clien t w i t h a compe t i t i v e package str aigh t away w ha t e v e r t o r eq u i r emen ts .


WE ARE A BROKER, NOT A LENDER Follo w ing an ini tial discussion, we w ill agree t he way fo rw a r d , hold de tailed discussions w i t h y o u , no r mall y face t o face , t o gain all t he necessary info r ma t ion w i t h a view t o getting a str aigh t fo rw a r d and positive decision f r om t he lende r . We ope r a t e w i t h a polic y of no u p - f r on t fees. O ur fee package is flexible and onl y payable on r e su l ts . All fees a r e agreed in advance and confi r med in wr i t ing .


Sho rt - Te r m B r idging Loan s Did y o u kno w t ha t bridging finance co u ld be t he best s ol ut ion fo r y o ur next inv e st men t p r ojec t ? We ’ v e p ut t oge t he r this a rt icle t o le t y o u kno w w ha t i t is and

just ho w i t w o r k s ! If y o u ’ r e looking fo r t he best bridging loans and s ho rt t e r m bridging loan s, PFN Finance has y o u co v e r ed .

He r e ’ s ho w bridging finance w o r k s .


When Do Yo u Need A B r idging Loan ? You can opt for short term bridging loans or bridging finance when you need to complete the p urchase of one property before you’ve finalised the sale of another one. Bridging loans are oft

en used as interim facilities to quickly purchase properties, facilitate cash flow, or even fund s maller work while long-term finances are being put into place. Here are a few scenarios, to help you understand better: If a property investor wants to grab hold of a good purchase opportunity at an auction. They may w ant to revamp the property for buy-to-let, so they’ll need to arrange permanent finances. In the meantime, a short term bridging loan is ideally used to complete the sale. A part-time investor wants to generate short-term business cash flow, as well as get planning per mission to turn the property from commercial to residential. They could take out a bridging loan for pre-construction finance till they can get a development loan. Property developers can use short-term bridging loans to consolidate borrowing in one place till a sale is fully completed. This way, they don’t have to manage many different lines of finance at

once, which can get very unwieldy.


Open

vs.

Clo s ed Sho rt - Te r m B r idging Loan s

B r idging finance is of t en cha r ac t e r i s ed as ei t he r “ open ” o r “ clo s ed ”. A closed s ho rt - t e r m bridging loan is w hen t he r e ’ s a defined exit plan , w i t h an established t imeline . An example of this w o u ld be when con tr ac ts a r e exchanged, b ut t he comple t ion of

ei t he r of t he transac tion s is dela y ed . These types of s ho rt - t e r m bridging loans a r e usually con side r ed t he best bridging loans in t he eyes of lende rs and bo rr o w e rs , bo t h . This is because i t gives bo t h sides a sense of ce rt ain ty . Open bridging loans on t he o t he r hand , have no fixed timings and of t en t ime s t he r epa y men t s o ur ce i s n ’ t v e ry clea r .


No w t ha t y o u kno w mo r e abo ut br idging finance , y o u ma y be mo r e inclined t o ca rry fo rw a r d w i t h

Concl us ion

y o ur la t est p r ojec t using this loan

me t hod . Fo r t he best b r idging loan s, con t ac t us a t PFN Finance, and w e ’ ll help y o u get w ha t y o u need !


Con t act Us Add ress - Roadside Fa r m , Li tt le Sali sb ury , Pewsey, Wil ts hi r e , SN 9 5 NB . Phone - 01672 569040 Email - info@pfnfinance.co.uk


Thank Yo u


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