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Own Property on Commercial Bridging Loans at Low Cost Finance
By Tim Kelly
For further advancing your business interests, you may have to buy new commercial properties. A huge fund is involved in buying property for commercial purpose. You can sell old commercial property for raising funds for buying new one but it may take time. Commercial bridging loans are suited best for taking the much needed finance for the time you sell old property to pay off the loan.
Commercial bridging loan are offered against a commercial property to be sold. The loan seeker can offer as collateral any of old property like residential or commercial property, development sites or auction property, retail shops etc. On the basis of equity in the property as collateral the lender offers a loan amount to the borrower. There is no hesitation on the part of lenders in offering a loan of huge amount as long as he is satisfied with the equity and safe return of the loan. Usually lenders will offer up to 70 percent of the value of collateral as commercial bridging loans.
Commercial bridging loans are short term loans. Since the loan is availed for the duration taken for selling old commercial property, the loan is paid back in few months to a year which is the usual duration for selling property. Now that it is a short term loan, interest rate like on any other short term loan goes higher. In fact the interest rate is so higher that it forms most of the cost of the loan. So make sure to pay off the loan at the earliest when you are finally able to sell old property.
Since lenders have well secured commercial bridging loans, they have no hesitation or a risk in giving required loan amount to bad credit people. If there is payment default, still the lender can recover the loan by selling property placed as collateral. Bad credit people may apply for the loan without any worry.
It does not take much time for approval of commercial bridging loans. Lenders have to verify the details given by the applicant and then value of collateral also is to be judged through an expert. So it may take 3-4 days for approval of the loan.
There are many commercial bridging loan providers who have displayed their terms-conditions on their websites. Before you make a deal, make sure that you compare the lenders for comparatively lower interest rate. Apply to an online lender for fast processing and approval of the loan.
Commercial bridging loan provides an opportunity for buying a commercial property. The loan is paid back through the sale amount of old property. Higher interest rate is involved in the loan so make sure to pay off the loan at the earliest.
About the Author
Tim Kelly is an expert in finance having completed his LLM in Finance from Institute for Law and Finance at Frankfurt University. To find Commercial bridging loan, commercial business secured loan, bad credit commercial secured loan in UK that best site's you need visit http://www.commercialsecuredloan.co.uk
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