How can I manage cashflow issues with a bridging loan?
Bridging loans are loans that last up to 12 months, intended to tide you over in the time between money going out and coming in. This makes them suited for several potential circumstances, whether you have sudden expenses that need paying or an unexpected bill.
When can I use a bridging loan?
A bridging loan can be used for a number of reasons. When you’ve secured a large new account, sometimes you need the extra funds that you don’t have yet, and sometimes an unexpected tax bill or up-front expenses can’t be foreseen. A bridging loan is different to an overdraft, as an overdraft may have a larger interest rate.
How should I repay it?
When you apply for a bridging loan, you have to present a worst case scenario for your repayment strategy; usually, this means that you agree to sell a property should you be unable to pay the loan back, though you may have alternative ways to do so, such as personal earnings. Our team of commercial lending specialists are on hand to ensure that your business finances run smoothly. Contact our team today for more information.