A property investment is a big step, there is a lot to think about but actually choosing the property requires a reactive approach, so, learn here how commercial bridging finance has the potential to expedite this process.
What Is Bridging Finance for Commercial Property?
Bridging finance, also known as a bridging loan, is a short-term loan designed to provide immediate funds to bridge the gap between purchasing a property and securing permanent financing.
These loans are typically used for a range of commercial properties, such as offices, retail spaces, or industrial buildings. They can be used to:
Act quickly on property deals
Renovate or refurbish a property to increase its value in preparation for selling
Facilitate property developments or conversions
Address any gaps in finance while waiting for long-term financing solutions
Using commercial bridge loans for property is one of the most popular ways of succeeding in reactive auctions, purchases and all round property investment. There is no time to waste when investing in the right space, so help from commercial bridging finance lenders can expedite the entirety of the process and make for a successful investment project.
How This Speeds Up the Process of Property Investment
So how does the use of commercial bridging loans actually help? Ultimately, it is a combination of aspects that make for a speedier process, yet the key thing is the fact you get fast funds.
It can be months before a mortgage is secured, so waiting and relying on this when in the environment of a competitive property market makes for an unlikely succession without finance secured sooner rather than later.
In relation to this, this kind of speed provides a competitive edge when it comes to moving quickly. Having a more attractive offer is likely to make you the chosen buyer over somebody else who could be waiting for a mortgage.
Not only that, but one of the main attractions of a bridging loan is that they’re flexible in terms of adhering to needs on a case by case basis.
It may be that you are just falling short of the funds required before you make a sale, a commercial bridge loan can help in this instance, taking into consideration the situation and making assessments on a range of criteria, unlike more restrictive alternatives.
These key aspects work in combination for a speedier approach to investing in property, so rest assured that a bridging loan can speed up your business ventures.
Example of Commercial Property Loans Assisting Property Investment
If you have never utilised a bridging loan for commercial property before, then it can be somewhat difficult to understand.
Simply put, this is an example of how opting for a commercial bridging loan works.
Consider you’re looking at a commercial property that is about to go on the market at a significant discount and you know this deal is going to be competitive.
You as the investor need to act fast to secure the deal but don't have immediate access to the required funds, making you arguably an unattractive buyer.
Thus, by securing a bridging loan, the investor can quickly purchase the property, renovate it to increase its value, and then refinance with a long-term mortgage.
This not only secures the property but has the goal of increasing the return on investment over time.
How to Get Bridging Loans for Commercial Property
Getting bridging loans for commercial property is easier than you may think, the process is designed to be fast to adhere to the whole point of commercial bridging finance. That being said, it isn’t overly complicated since the turn around needs to be fast.
Contacting a reputable company that is exclusively commercial bridging finance lenders makes for a more specific approach. Rather than opting for lenders that offer more than one way of financing, it could be a good idea to go for lenders who are specialised in commercial bridging loans as this is their forte.
If you want to talk about how bridging finance could help your commercial property investment, get in touch with us at MS Lending Group to find out how we could help.
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