Using a bridging loan to exit development finance can be a strategic move for developers completing a project. Here’s how we can help:
Bridge the gap between completing your project and arranging long-term financing, such as securing a traditional mortgage or preparing the property for sale. The bridging loan acts as a temporary solution until a more permanent funding source can be arranged.
Development finance often provides funds in stages throughout the construction process. Towards the end of the project, when construction is nearing completion, you might need a final injection of funds to finish the remaining work, cover outstanding costs, or prepare the property for sale or refinancing.
Bridging loans offer quick access to capital. This can be crucial if you need immediate funds to finalise construction, settle outstanding debts, or prepare the property for sale or refinancing.
Bridging loans can assist developers in taking advantage of market opportunities. They provide the necessary financing to complete the project swiftly, enabling the developer to capitalise on a favourable market condition for selling or refinancing the property
Bridging loans can have more flexible repayment terms, allowing you to repay the loan once the property is sold or refinanced, usually within a short period. This aligns with the cash flow timing of the project’s completion and subsequent sale or refinancing.
Developers need a clear and viable exit strategy when using a bridging loan. Whether it’s selling the property, refinancing, or securing long-term financing, having a solid plan is crucial.
It’s crucial for developers to carefully evaluate the financial implications, market conditions, and timing when considering a bridging loan as an exit strategy from development finance. Consulting with financial experts or advisors experienced in property development and bridging finance is crucial to make informed decisions
Why Use Us?
As an experienced broker, we can offer several advantages in navigating the complexities of this type of financing:
Bridging loans can be complex, we specialise in this field can provide expert guidance. We have experience within specialist lenders and understand their credit process. This can help you understand the nuances of different loan products, their terms and conditions, allowing you to make more informed decisions.
We handle much of the legwork involved in securing a loan. We assist with paperwork, facilitate communication between the you and the lender, and expedite the process, potentially saving time and reducing stress.
We have established relationships with lenders and able to negotiate better terms, interest rates, or fees on your behalf, potentially saving you money over the life of the loan.
We can assess the your individual situation and find lenders willing to offer more customised solutions that fit specific needs, property types, or circumstances, increasing the likelihood of approval
We understand the various requirements of different lenders and can guide you on what documentation, information, or criteria lenders typically expect, helping you prepare your application more effectively.
Choosing a reputable and specialised broker with experience in bridging finance is crucial. We are always transparent about our services, fees, and have a track record of successful loan placements.