{"id":1521,"date":"2008-06-18T07:44:31","date_gmt":"2008-06-18T12:44:31","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/06\/18\/define-a-bridging-loan\/"},"modified":"2008-06-18T07:44:31","modified_gmt":"2008-06-18T12:44:31","slug":"define-a-bridging-loan","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=1521","title":{"rendered":"Define a Bridging Loan"},"content":{"rendered":"
by Alan Harding<\/div>\n

A bridge loan is a loan that a person (or sometimes a business) takes out for only a short time–no longer than one year. The purpose of the bridge loan, or bridging finance, is to give the borrower needed cash until he secures a more long term loan or receives funding. The immediate cash flow that is provided by the bridging finance allows the borrower to meet current financial obligations while a deal or contract is still in process or being negotiated.<\/p>\n

Bridge loans have high interest rates and need to be backed by collateral. What they do, as their name suggests, is to bridge the gap between a time when the borrower has the more permanent loan or financing that he’s seeking and the present with its immediate financial needs. Bridging finance is used in many different financial situations.<\/p>\n

Business owners<\/a> may acquire bridge loans to finance the needed working capital of their business while awaiting equity financing deals which could only be completed after several months.<\/p>\n

People often resort to bridge loans when they are planning to sell a home. The real estate<\/a> market in a specific area can move slowly at times, or a home can just be difficult to sell. People who purchase a new home before selling their existing home may take out a bridge loan so that they can pay for their expenses and financial obligations until a sale is finalized on the existing home and they have access to the proceeds. A bridge loan may also be used as “chain breaking”, meaning a borrower may use it to purchase a new house even while their old house is still on the market.<\/p>\n

Another useful aspect of bridge loans is they can be used to boost credit<\/a> scores. Bridge loans may be used by borrowers to pay outstanding debts, thus making a positive credit score and enabling the borrower to apply for other loans that are more permanent and larger in amount. These loans also help bridge the gap between leaving one job and starting another. Similarly, bridge loans may be useful to finance relocation costs when someone moves because of their job.<\/p>\n

Often, you can receive a bridge finance in just 24 hours, since the need for extensive background checks and risk consideration are minimized by the high interest rate, short duration, and collateral backing required.<\/p>\n

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About the Author:<\/div>\n
Visit Alan Harding’s website for all your short term loan<\/a> requirements.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

A bridge loan is a loan that a person (or sometimes a business) takes out for only a short time–no longer than one year. The purpose of the bridge loan, or bridging finance, is to give the borrower needed cash until he secures a more long term loan or receives funding. The immediate cash flow that is provided by the bridging finance allows the borrower to meet current financial obligations while a deal or contract is still in process or being negotiated.<\/p>\n","protected":false},"author":715,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-1521","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/715"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1521"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1521\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}