Finance your immediate needs
Some people will sell their old property before buying a new property, and most of the people want to perfectly match the date they are selling and buying. However, in reality, many people find a dream property before they sell their existing property. To avoid the expenses of this overlap, people could move into their new house first and apply for a bridging loan for the period before the old property is sold. Bridging finance provides you with the funds for buying your new property before you sell your old one.
For example, if you own a property worth $800,000 with a $300,000 mortgage, and your ideal property costs $900,000, you could apply for a bridging loan for ($300,000+$900,000)-$800,000=$400,000.
This is how bridging loans work in the real estate industry, and they can apply to business purposes as well. Bridging loan can be treated as a short-term loan, loan with a loan period usually under one year. With a bridging loan, you pay only the interest payments until your old property is sold, at which time you can pay off the principal.
Bridging finance provides the opportunity to upgrade or purchase another property while you are trying to sell your current one. The security is backed by the proceeds that are gained from the sale of the existing property. This type of loan product is provided for your convenience, allowing you the freedom to purchase your next property without the burden of having to match the settlement dates of the purchasing and selling contracts.
This type of financing typically operates on a 12-month contract that sets out the terms and conditions. The sale of the previous property should take place before the contract expiration date. This allows the purchaser the opportunity to purchase a new property on the market without the risk of it being sold to someone else, whilst allowing a longer time frame for the purchaser to sell their old property.
Bridging loans can ease the stress of ensuring cash flows, so your business can operate smoothly. Generally, when a business is growing, it will require a large amount of funding. Due to the long application process, before you get a loan, you will need a bridging loan to assists your business operations.
You can take a bridging loan if you want quick money for development, purchase or renovation of a property.
Banks charge high interest rates for bridging loans due to high risk, and people have to bear two loans for a period of time. But it can be treated as a kind of short-term loan now with Max Funding. Applying for a bridging loan can be very easy and fast. Simply fill out the pre-approval form below at first, and let us know how much you want to borrow, what the purpose is, and what your credit history is. You can apply online anytime and anywhere and get a pre-approval decision in a few minutes by email or SMS. After you upload some required documents, we will send you the contract, and once you sign the contract, we will deposit the funds directly into your bank account as fast as 24 hours.
Max Funding assists thousands of small and medium enterprises in Australia with their business financial issues every year. Max Funding understands the importance of cash flow for small business operations, and we deliver our services fast. If you have any questions, please feel free to contact us and get your bridging loan today!