Bridging Loans - For Personal & Business Needs

A bridging loan is a short term finance that is used to bridge the gap between a buy and a sell transaction. It pays for your new property before you sell your old one. Once you sell your old property, the proceeds can be used to repay the bridging loan. It can also be used to finance a business. If you have applied for a business loan, you can take out a bridging loan to run your business until you receive the business loan.

A bridging loan is a secured loan which is secured against a commercial or a residential property. As we have already discussed, a bridging loan is a short term loan that is used to fulfill short term personal or business needs. The loan period of bridging loans ranges form a few days to a few weeks. The maximum loan period of a bridging loan is two years. The good thing about bridging loans is that they are easily available and can be arranged within a short period of time.

The rate of interest on bridging loan is very high. You should get it only for the purpose of bridging the gap between two transactions. Once you get it, you should repay it within a short period of time because of high interest rate. If you take out a bridging loan,

ERIC S. DAVIDSON

SURVEY RESEARCH IS EASIER WITH QUALTRICS SOFTWARE

ABRAHAM LINCOLN IN SONG WORKSHOP

NEW AGORA IS HERE

BOOTH LIBRARY SPRING 2009 WORKSHOPS

STUDENT REC CENTER HOLIDAY HOURS

EIU RENEWABLE ENERGY CENTER MEETINGS SCHEDULED

CLASS PACKETS FOR SPRING 2009

UPDATE FROM STATE RECORDS COMMISSION

NEW RULING FOR EIU RECORDS

FACULTY DEVELOPMENT SUPPORT GRANTS

BUG -- REPORTING AT EIU: WHO, WHAT, WHERE AND HOW

GREGG COMPUTER LAB HOLIDAY HOURS

BOOTH LIBRARY HOLIDAY HOURS

REGISTER NOW FOR THE ONLINE COURSE DEVELOPMENT INSTITUTE FOR SPRING 2009

BENEFITS CHANGES EFFECTIVE JANUARY 1

APPLICATION DEADLINE CHANGE FOR FACULTY-LED STUDY ABROAD PROGRAMS

2009 SUMMER RESEARCH AND CREATIVE ACTIVITY GRANT COMPETITION DEADLINE FEB. 4



make sure that you repay it as per the loan terms, otherwise the property that you offer as a security may be repossessed by the lender. The rate of interest depends upon the credit rating of the borrower and the value of collateral.

If you are taking out a bridging loan to purchase a new property, then make sure that your old property gets sold quickly otherwise your interest burden would be very high. You must try and sell your old property as soon as you get a bridging loan since the sale proceeds of the old property will be used to repay the new property. Bridging loans can also be taken out by borrowers who have a bad credit history. The rate of interest on bad credit bridging loans is even higher. You must consider every aspect of a bridging loan before applying for it.

Author:

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Apply-4-loans as a finance specialist. For more information please visit =>http://www.apply-4-loans.co.uk

[tags]UK Loans, Easy Loans, Education Loans[/tags]


Here are some more debt loan student articles...