Member Article

Fast Access Bridging: 24 Hours to Affordable Funding

From established businesses to aspiring investors, access to quick and flexible financing solutions can make all the difference. Unfortunately, this is a widespread requirement that is rarely (if ever) responded to in any useful way by mainstream banks.

Reliable as they may be, conventional High Street loans and mortgages often involve lengthy approval processes that can take weeks (if not months) to navigate. By contrast, fast bridging loan applications can be processed and underwritten within a few working days.

In fact, it is perfectly possible to access funding within as little as 24 hours, when a complete and convincing application is submitted with all required evidence.

But in what specific scenarios would the individual or business need to access significant sums of capital so fast? Given how bridging loans are typically issued in fairly high sums, when could a swift yet sizeable cash injection come into play in a real-world setting?

Practical applications for fast access bridging finance are as abundant as they are diverse, including the following common scenarios among others:

1. Property Chain Breaks

• Scenario: A common situation where a homeowner is in the process of selling their property to purchase a new one, when the buyer of their current home drops out, jeopardising their ability to secure their dream property.
• Solution: Fast bridging finance can step in to provide the necessary funds to complete the purchase with a lump-sum cash payment, preventing the property chain from being broken.

2. Property Auctions:

• Scenario: You spot a prime property at an auction, but you lack the immediate funds to secure it and it would be impossible to raise the capital needed within the 28-day payment window with a conventional loan.
• Solution: Specialist bridging loans enable businesses and individuals to place bids at auction with confidence, knowing that if they are successful, they can access the money they need to complete the purchase right away.

3. Business Expansion

• Scenario: Your small business is experiencing rapid growth and you have the opportunity to acquire a larger commercial space that would accommodate your expanding operations. However, you need to move quickly before another business snaps up the property.
• Solution: Fast bridging finance can serve as a crucial tool for business expansion. It enables you to secure the necessary capital swiftly, allowing you to purchase the larger commercial space before your competition.

4. Property Investments

• Scenario: You’ve been keeping an eye on the property market for a while and suddenly, a fantastic investment opportunity arises.
• Solution: Fast bridging finance allows you to access the necessary funds within a matter of days. This quick turnaround enables you to seize the investment opportunity, purchase the property and potentially enjoy significant returns on your investment.

5. Renovation and Refurbishment

• Scenario: As a property developer, you’ve acquired a project that requires immediate renovation to maximise its value. You also have a qualified buyer lined up, but they need to purchase the property from you as quickly as possible.
• Solution: Bridging finance can provide you with the capital you need to cover all renovation and improvement costs, maximising the value of the property and enabling its prompt sale. After which, the loan is repaid and you retain all additional profits.

6. Settlement of Inheritance Tax

• Scenario: You have inherited a substantial estate but require time to organise finances for inheritance tax. Unfortunately, the UK’s catch-22 IHT legislation means you cannot access any of the assets you have been bequeathed until you come up with a large lump-sum IHT payment.
• Solution: Covering IHT obligations is a surprisingly common application for fast bridging finance, enabling beneficiaries to access their assets promptly and to ensure their IHT requirements are covered before potentially facing additional fees or penalties.

The reduced turnaround time sets fast bridging finance apart from almost all types of traditional lending options. A unique facility that caters to urgent financial needs, bridging gives businesses and individuals the opportunity to seize time-sensitive opportunities.

For more information on the potential benefits of fast-access bridging finance or to discuss your own time-critical capital requirements in more detail, contact a member of the team at UK Property Finance today.

This was posted in Bdaily's Members' News section by iCONQUER Ltd .