A short-term finance solution, bridging loans are designed to bridge a financial gap between a shortage of funds and the time when expected capital arrives.
Whether firms are looking to secure a property purchase, complete a contract, launch a new project, get a deal on inventory or manage late payments, a bridging loan can be a viable option. However, as financial products used in time-sensitive circumstances, many borrowers want to know how long takes to get a bridging loan. Here, we explore the main factors involved that influence how fast a bridging can be accessed.
Lenders
The services of lenders offering bridging loans can vary considerably. The resources open to them and the specific processes they use mean that some lenders can manage loan applications much quicker than others, which can impact the timeline.
Application quality
Incomplete applications that contain errors can delay bridging loans. It is always advisable to supply complete and accurate information and documentation, double checking all applications before submission.
Legal work
Bridging loans for purchasing property are often affected by the conveyancing process. This involves the borrower’s solicitors as well as the lenders, and can lead to delays. To avoid issues, employing solicitors with experience of bridging loans is recommended.
Valuation and surveys
Property purchases can also involve building surveys and valuations conducted by qualified professionals. These steps can also increase the total duration of receiving a bridging loan.
Financial history
Companies and individuals applying for bridging loans often find the process faster when they have a clear financial history and excellent credit scores.
Exit strategy
When securing a bridging loan, borrowers must have a financial plan to make repayment. Any issues with this exit strategy can result in a delay.
Does your business need a short-term finance solution?
If you’re looking for a bridging loan at AJL, we can help. We specialise in prompt decisions on application and can release funds within four weeks, which can be ideal for short deadlines on auction purchases. Complete our online application today to assess your eligibility for a bridging loan.
