Find out how a bridging loan can help you

Firstly, what is a bridging loan?

As the name suggests, a bridging loan is designed to 'bridge' a gap in finances on a short-term basis. They are often used by commercial enterprises, but are also available to private individuals.

There are two main types, closed, which require you to detail how you plan to pay it back, but are settled quicker, and open, which do not require this information, and allow around a year to pay back.

They provide fast access to funds, but often come with higher interest rates and fees as a result, and may require your property or assets as security, so should be carefully considered before going ahead with them.

You might be asking "would I benefit from a bridging loan?". The answer varies from client to client, but at Whitneys Financial Services, we find that they are best considered if:

• You're waiting to finalise a property/asset sale, but need funds in the short-term
• You're looking to invest in a property or purchase that is time sensitive, such as a property at auction
• If you need funds immediately/very soon