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.