Why Opt for a Short-Term Bridge Loan?
Bridging loans, while complex transactions, are very quick to set up. Lenders will move quickly to give you an offer, and if accepted, you will be able to draw down funds in as little as one or two weeks, depending on your requirements. Working with Enness, the application process will move fast, and you will receive initial offers in as little as 24-48 hours. Credit-backed terms follow quickly, and it's not unusual to receive these in as little as 36 hours after you first reach out to one of Enness' brokers.
Comparatively, the application and underwriting process for other types of ‘traditional’ lending often requires long, arduous application processes. Lenders will want lots of information about your financial situation so they can weigh risk. You'll need to answer lots of questions, meet with your lender and submit extensive paperwork before they can consider your application. Mortgages, with their lengthy valuation and underwriting processes, are examples of this.
Bridging loans can be used in a variety of different ways. This type of finance is increasingly utilised creatively and strategically to help high-net-worth individuals respond to opportunities, snap up bargains and solve problems.
Short-term bridging finance is hugely flexible, and you can use it in lots of different scenarios. These include:
- Freeing up capital to pursue an unexpected opportunity
- Solving a short-term cashflow challenge before a liquidity event
- Accessing liquidity to move quickly and buy ‘bargain’ assets
Bridging loans are often cheaper than other types of borrowing, and they are more flexible, too. Borrowers are typically more open to different plans and projects than they might be with other types of lending, so you’ll be able to pursue broader activities or assets. Many people create liquidity to pursue business opportunities, grow a company, invest in a project or free up capital to pay off a different property or settle a debt, but the possibilities are nearly endless.