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Six Creative Uses for Bridging Finance


Contributed by Craig Upton
October 18, 2021



Mention bridging finance and the first thing that comes to mind is auction property purchases; one of the most popular applications for fast-access bridging loans, but just one of countless common uses for bridging finance.

Away from the auction room, there are various other ways bridging loans can be put to use in creative and convenient ways.

A few examples of which include the following:

Property Chain Break

Bridging finance can be used to purchase a property before the sale of your current home has been finalised. This means that if you find the home of your dreams before you sell your current home, you need not lose it while waiting to find a buyer for your current home. You can take out a bridging loan, purchase your new home and repay the loan a few months later when your current home sells.

Covering Short Term Cash Flow Issues For businesses, bridging finance provides an affordable option for covering a variety of short term cash flow issues. Examples of which may include upfront expenses, outstanding invoices and general unexpected costs of any kind. A bridging loan can be the answer for allowing a business to continue as normal, without disruption.

Property Conversions

Investors routinely turn to affordable bridging finance to fund property conversions, renovations and improvements. A home in a relatively poor state of repair can be purchased at a low price, renovated with the help of bridging finance and sold on for a significantly higher price to generate profits.

Paying Unexpected Tax Bills

Using bridging finance to pay an expected tax bill can protect a business from the prospect of heavy fines and penalties. Not to mention finding themselves on the radar of HMRC. Unexpected bills of any kind that need to be paid quickly can often be covered with an affordable short-term bridging loan.

Preventing Property Repossession Where a homeowner falls into difficulties repaying a mortgage, they could take out a bridging loan to stop repossession by repaying the outstanding balance in full in one lump sum. After which, they could put their property on the market, sell it for the best possible price and use the proceeds to repay the bridging loan,

thus hanging on to any subsequent profits, a far more agreeable outcome than their home being repossessed by the lender.

Short-Term Development Finance

Bridging finance is also a popular choice for property developers looking to cover a variety of costs with an affordable short-term facility. Property development is a field rife with unexpected costs and heavy initial outlays, which in many instances can be covered with a bridging loan for prompt repayment a few months later.

For more information on any of the above or to discuss the benefits of bridging loans in more detail, consult a bridging loan specialist to see what options you have.


Craig Upton supports UK businesses by increasing sales growth using various revenue streams online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to increase traffic. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for over a decade. A trusted SEO consultant and trainer, Craig has worked with British brands such as FT.com, DJKit, UK Property Finance, Serimax and also supported UK doctors, solicitors, builders, jewellers, to mention a few, gain more exposure online. Craig has gained a wealth of knowledge within the digital marketing space and is committed to creating new opportunities working with UK companies.







 

Tags: Property Investment | Banks/Financial | real-estate investment | banking | real-estate

 

 

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