Commercial Bridging Loans are Available for Bad Debtors Also
Simultaneously, buying a new property and selling the old one is not possible for everyone. In such cases, bridging loans are used as a link to plug up the short time monetary void. Bridging loan is a sort of secured loans that is provided borrowers at the time of property transaction. Not only for buying housing or auction property, but bridging loans are also available for commercial purposes.
As the name suggest, the main purpose of commercial bridging loans is to assist borrowers at the time of commercial property purchasing. The purposes that can be performed with a commercial bridging loan are as follows:
•Purchasing new office, factory or other business premise.
•With commercial bridging loans, a borrower can buy machines or some other necessary goods.
•A businessman, whose selling is going through credit, can use a commercial bridging loan as his business resource as well.
However, the borrower must be aware of the common features of commercial bridging loans. These features are mentioned below:
•As it is mentioned before that these loans are a sort of secured loans thus it is mandatory to pledge a property as security against the loans amount.
•Two types of commercial bridging loans are available- closed bridge and open bridge.
•As a commercial bridging loan, one can borrow anything between £30,000 to £10,000,000
•Since, commercial bridging loans are short term loans, so the repayment period is varied from a month to 2 year.
•These loans are approved swiftly. It hardly takes 24 hours to credit the amount in the borrower’s account.
•As these loans are short term based loans, thus the interest rate of these loans is little higher.
Can a borrower who has bad debt apply for these loans? Of course, he also can be benefited with bad debt commercial bridging loans. Many lenders, these days are offering bad debt commercial bridging loans. So, if you have bad debt then do not get worry, as bad debt commercial bridging loans are there to serve your need. Only you have to know that what your present credit score is. Here you can take help of various credit rating companies and can get a copy of your credit report from there. But due to your bad debt tag, you may have to pay higher interest rate.
Commercial bridging loans are mainly used for commercial property transaction. Borrowers can avail these loans to meet their various commercial needs. Even more, if any borrower has bad debt, then it will not hinder him to avail these loans as many lenders provide bad debt commercial bridging loans as well.