Short term loans for property entrepreneurs
Have you wanted access to substantial funds via a loan facility? May be to purchase a property, premises or land? And at the same time you want the autonomy to repay the loan quickly. Unlike mortgages, short term finance is designed to achieve just that, it is a facilitator, provides rapid funds, and enables customers to meet their finance objectives with out being heavily penalised for early repayment like you would be on a personal loan or mortgage.
Once the concept has been used we find our customers start to think differently, become entrepreneurial, and awaken to new opportunities that short term finance provides and use the facility time-and-time again. Interested on how bridging finance could change your lifestyle and make you successful? Then read on.
The opportunities are there to be grabbed with the use of short term finance
To realise a real bargain property purchase you need to arrange a loan secured on a property or across multiple properties or assets within a short time frame. That’s the only way you can complete with the professional landlords who actively seek to buy properties under value such as repossessions or fire sales, through private sales or auctions, with expert short term bridging finance.
Bridging finance is a complex area with many pitfalls but by using this valuable mechanism correctly we can help you become a property guru and provide you with a competitive edge to take on even the hardened of property professionals. How so? Well we have direct access the underwriters at the bridging lender houses that specialist in development finance from the whole of the market. We can also arrange a pre-agreed property funding line, which operates like an overdraft facility, allowing you to effectively write a cheque on the spot to purchase a property that takes your fancy. The vendor is obviously appreciative of a response of this order and this can be used to improve your negotiations to drive the property price still lower.
Once the property is purchased you may wish to do-it-up and sell it on or keep it and remortgage it to repay the short term loan and potentially release additional capital to expand your property portfolio still further.
We can provide full support and guidance on the whole process from arranging competitive short term property finance to the potential remortgage. With real property bargains you rarely get a second chance so it is important you have expert help and get it right first time.
For Short Term Loan Advice please complete our Contact Form and of course if your enquiry is of a urgent nature please call me directly on T: 0207 9932044.
Point 1: Finance for properties investment, including unusual property types
Not all property is considered equal in the eyes of lenders. We access the whole of the market and therefore know through first-hand experiences the most suitable provider whatever the project entails, whether it is in finance a renovation, complete a land purchase or take the first steps into a new property investment project.
Bridging loans tend to be a lot more flexible than a mortgage when it comes to both commercial and residential properties and projects. With so many people trying to get into buy-to-let, it can be a great choice for you are already landlords, looking to become a landlord, or if you represent investors looking to build portfolios – and it’s one of the few options left for applicants looking to buy dilapidated properties for full renovation.
Point 2: Secure the property you want with a fast loan
Clients can face the agony of a waiting game when it comes to property purchases, and run the risk of losing out while other potential buyers gain interest in the property; particularly as the buy to let market gets increasingly popular.
But it doesn’t have to be like that. Bridging loans can be used to purchase a property quicker than traditional finance such as mortgages.
It’s a facility that works particularly well for those who don’t wish to miss key investment opportunities.
Point 3: Do you want to be a self-made property entrepreneur?
We admire those who’ve made it on their own. You are your boss, but finding funding to seize a short term business or property opportunity can often be difficult.
Many high street lenders have tightened criteria and procedures in recent years, meaning that traditional loans are not always available to fund a business opportunity.
Bridging finance from specialist lenders is different – it can work for both applicants with or without a good credit rating, and for commercial, semi-commercial or business loans.
So if you are self-employed, sole traders, partnerships or limited companies, you may be surprised at what’s available, even for the least likely clients.
Point 4: Short term funding for the renovation of a property
Thinking of purchasing a property to renovate and need finance? I’m sure you are excited by the prospect of the potential equity you can make. You do however need to be aware that most mortgage providers will need the property to be habitable from day 1. That’s right have a working bathroom, kitchen and heating – home improvements which often are the difference between buying a renovation or a fully finished property.
A short term loan is the answer and we can oversee the whole process.
Point 5: Pre-agreed funding line for property purchase
If you thinking of buying at an auction you need to know that your finance is in place otherwise you could easily loose the property you want or unnecessary risk your deposit.
Point 6: Finance for Business expansion / Finance for Business opportunities
For today’s businesses, cash is king. If you don’t have the readies, you can’t take up the opportunities – it’s as simple as that.
But at the same time, those opportunities can crop up when least expected and, if finance isn’t to hand, they’ll slip away only to be snapped up by competitors.
It’s in these situations that bridging finance really comes into its own. When that once-in-a-lifetime chance presents itself, clients can get the right amount of money at the right time.
So if short-term liquidity’s an issue, businesses can still generate capital for acquisitions, stock purchases or the latest innovations, keeping them on top of their game and ahead of their rivals.
Point 7: Capital Injection for Business / Finance To Help With Cashflow / Fund A Management Buy Out
No business is without some unexpected hiccups and surprises along the way. You may need urgent finance for a sudden bill, tax demand or to satisfy a short term cash flow requirement.
Instead of re-mortgaging onto long term finance; we can help you take out a bridging loan to cover the short term need. A bridging loan can be provided as a second charge behind a mainstream mortgage to facilitate this.
Bridging finance is also ideal in a management buy out/buy in situation due to short time scales. It can be used in the interim period before traditional funding is put in place. With bridging finance from specialist lenders, your clients have quick solutions to short term problems.
Point 8: Second charge commercial bridging
Most businesses have their first charge with a high street bank, which can make access to extra funding difficult, as they generally don’t offer further advances on their long term business loans.
It is for these reasons you should be aware that second charge commercial bridging is an important and viable option. The loan can be secured against land or property, enabling you to take up opportunities where large sums of money need to be raised over a short period of time.
Tip 9: Debt consolidation for Businesses
Managing finances can be problematic, particularly when you have lots of commitments to pay a wide variety of costs. As debts start to pile up, a short term bridging loan can allow you to consolidate outstanding invoices to avoid such headaches.
Debt consolidation may take the form of a second charge commercial bridging loan, which can provide a business with the vital short term security, cash flow and time required to enable it to sort out its finances in the longer term.
This approach will also enable your business to preserve relationships with existing suppliers while restructuring its debts into one straightforward and structured payment arrangement.
The message is simple: short-term debts can be paid with a bridging loan making it easier to resolve and structure your finances in the long run.
Tip 10: Finance your Business move
Relocating a business can be both stressful and costly – but it doesn’t need to be. A bridging loan is the ideal finance for companies looking to relocate to new premises.
A short term bridging loan means that you can borrow the right amount of money to cover the duration of the move only. The loan can also help with the associated costs of the move, in terms of hiring removal firms, setting up I.T or refurbishing the new premises.
This is where bridging finance is particularly beneficial as it can help ensure that you do not need to dip into company cash-flow to fund the move.
With a bridging loan, you can pay back the money when the move is complete and the company starts to reap the rewards for the relocation.
For Short Term Loan / Bridging Finance Advice please complete our Contact Form and of course if your enquiry is of a urgent nature please call me directly on T: 0207 9932044.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.
You can call Payam on 020 7993 2044 or alternatively complete the enquiry form so he can personally get in touch with you.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage and Insurance advice.