BizLoans4U specialise in sourcing bridging loans for a multitude of clients from landlords & property developers to mainstream business requirements. We are proficient in providing bridging loans which can be used as a short funding option used to 'bridge' a gap between a debt becoming due and the main line of credit becoming available. Or they can simply act as a short-term loan in certain circumstances. Bridging loans can be used for a variety of reasons, including property investment, purchase of stock, buy-to-let, development or simply to plug a short term working capital issue.
Bridging loans are designed to help clients obtain the funds they require when perhaps all other funding options may be deemed as out of reach. As mainstream banks and building societies have grown more reluctant to lend in recent times, there has been an influx of bridging lenders into the market. BizLoans4U operates within the "whole of market" and therefore has access to a large number of funders all offering tailor made options for our clients.
However, more recently, there has been a growing trend among borrowers to use bridging loans because high street and private banks are taking longer to process applications for larger home loans. Some borrowers are also viewing bridging loans as a simple alternative to mainstream lending. While a bridging loan may sound tempting, if you're thinking about taking one out, you need to think carefully about your exit strategy. This might, for example, involve getting a mainstream mortgage or a buy-to-let mortgage, or selling the property altogether.
The problem is, you may not have any guarantee of being accepted for a mortgage with a mainstream lender after having taken out a bridging loan. This could put you at risk of losing your home. The FCA is concerned that advisers could be recommending this type of loan too quickly when it may not be the best solution.
Crucially, if you've not used this type of finance before you need to tread carefully, as there are often hidden and hefty legal fees and additional administration fees that are not always made clear. All of these mean the cost of your bridging loan could soon mount up.
Put simply, bridging loans should not be viewed as an alternative to mainstream lending. Contact us for more information on how we can help your business secure the funding it requires.