Short Term Sources of Finance London UK
Are short term sources of finance ever any good for people? Really, it depends on the type of finance you’re thinking about, and how sensible you are when it comes to repayments.
Payday loans are short term sources of finance, but the interest rates that come with them, and the time given to pay them back can mean that they become more of a hinderance than a help. However, in some situations, they can be necessary. As long as you understand what you are getting into when you sign up for one, and look into the interest rates and how much you will be paying back overall, you might feel that they are a good solution. For others, they can lead to massive debt and stress, and leave them in more financial difficulties than they were in to begin with.
At the other end of the scale are bridging loans. It’s true these are still short term sources of finance, but they are far removed from the difficult to deal with and potentially damaging payday loan market.
Bridging loans allow those who want to purchase a property, for example, to do so, with the loan literally bridging the gap when the property is not able to be mortgaged. The loan could mean that a property could be bought and then completely refurbished – the loan could then be paid back and a standard mortgage obtained once the lenders were sure that the money would be paid back should it need to be.
These loans enable people to get on the property ladder when they might not otherwise be able to, or to see a dream come true when it comes to getting a house ready to buy or to rent out. Again, as long as repayments are sensible and everything is thoroughly thought through, bridging loans can be ideal short terms sources of finance.
Bridging Loans UK Can Be Fast
Bridging loans solve this problem by providing short-term funding to the buyer for the transaction at hand while waiting on the funds from another transaction. The approval process can be very quick and terms can be customised to fit a wide range of circumstances. Of course, this is provided you deal with a finance company that is knowledgeable and monitors the bridge loan market daily.
Here are a few steps you can take to ensure a quick and easy bridge loan process:
- Choose a finance company that is an expert in the bridge loan market.
- Be honest and upfront with your loan consultant so they can tailor a solution that will be the right fit.
- Verify your chosen finance company has more than 3 or 4 lender options available.
- Be prepared to make a commit and move forward, a good finance company can arrange bridging loans within a day or two in some cases.
- If you have an important real estate transaction pending and you need to arrange short-term funding, don’t settle for dealing with a company that is less than an expert in the market. Choosing the right provider can save you time, money, and many headaches.
Short-term Sources of Finance
Short-term financing is often required by businesses to meet the needs of current assets and pay the existing liabilities of the enterprise. In simple words, the organisation requires a short-term fund to bridge the gap between due payments and the main source of finance available. A constant cash flow must be ensured in order to keep the business running successfully. A business may require a huge amount of working capital every month to pay employee wages, purchase raw materials, pay export fees, service equipment and funds for marketing their products and services. Thus, having a sufficient working capital is a lifeline of any organisation.
However, the hardest part is to raise the money for the working capital. Although international businesses are dependent on the clients’ payment, but sometimes delay in their payment may give a rise to serious troubles for you. One of the best ways to raise funds to keep your business going is by choosing the bridging loans, invoice factoring and invoice discounting form of commercial bridging solutions. But, before you apply for the bridging loan, you must consider things like:
- How much finance is needed?
- How long the finance is required for?
- What can you provide as security?
- Would you agree to give up some control of your assets?
After considering these questions, you may prefer to choose any of the following loan:
Commercial Bridging Loan: Short-term bridging loan for corporate finance may be a right choice if you are looking to arrange money in a short time-frame. You can apply for a bridging loan at BridgingFinance4U against a commercial property as a security, irrespective of your credit history and current revenue.
Invoice Factoring: Invoice factoring is another way of generating quick funds for businesses. In this form of finance, you sell all of your outstanding invoices to BridgingFinance4U at a discount. We will give you up to 90% of the total invoice value in the next 48 hours, and the rest of the amount when your clients pay off the invoices. The major advantage is you hand over all the payment collection tasks and the risk of them not making the payment on time to us.
Invoice Discounting: Similar to invoice factoring, invoice discounting allows you to raise funds by leveraging the value of your sales ledger. The only difference between invoice factoring and invoice discounting is you don’t sell your invoices to us. You still have control of the sales ledger when you choose invoice discounting, and your customers may not know you have taken the help of a finance company.
Invoice factoring and invoice discounting are often preferred by most businesses in the UK since they offer a flexible lending solution. The money that an organisation can borrow increases when their sales increase. Moreover, the loan you get through invoice factoring and discounting is unsecured, meaning you don’t have to keep your property as security. At BridgingFinance4U, we work hard to solve your short-term funding problems by offering various finance sources. Our approval process is pretty quick and the loan terms are customised to meet your needs.