Is A Bridging Loan The Best Option For Short Term Finance?
There are numerous lending products for businesses these days with some being offered by the major clearing banks here in the UK but there are also many other sources of such finance such as peer-to-peer lending.
There are so many factors that need to be considered when deciding which is the most suitable short-term lending product to meet a business’s needs. Below, we highlight a number of options but, ultimately, you will have to make your own mind up.
When deciding upon the most suitable lending product you will need to take into account a number of factors such as the purpose for the finance i.e. is it to assist in the purchase of business premises pending a commercial mortgage being agreed, is it to buy stock, how long you will take to pay back the borrowing and the interest rate and fees payable. Having got this information, you can then pass it on to ourselves and we will arrange for a commercial mortgage broker to make contact with you.
A typical scenario of when a bridging loan is possibly the most suitable lending product is where you are waiting for a mortgage to be sorted out with a lender but you are having to complete on the purchase rapidly so as not to loose the business. In this situation, you may find that a bridging loan may be the most suitable option.
An example of when a bridging loan is not the most suitable lending product is when you require access to funds quickly on an ‘as and when needed” basis with the monies being required to say buy additional stock leading up to the Christmas period. In this scenario, it is quire possible that you may be better off with a business overdraft facility.
When it comes to deciding who to arrange the short-term finance with the natural inclination is to get in touch with the bank where you run your business current account but this may not always be the best option. There are so many different lenders these days that it could be to your advantage to shop around to try to source one offering a competitive business finance deal.