If you want to take a loan for the purchase of commercial property but you don’t have funds for the same then you have the option of considering capital bridging finance. Knowing what is capital bridging finance is very important because it allows you to take a loan for property purchase while you are awaiting the sale of another property. This is different from the other kind of bank loans because it is a kind of short term property backed finance that is used for a short period of time. The amount of money that you get is used for purchasing commercial property as well as residential property.
Capital bridging finance is a term where you take a loan for bridging the gap between the due date of taking a loan and date for securing longer term finance. You take this bridging loan if you find some profitable commercial property for sale but you don’t have enough cash for the purchase. This is the reason why you need the loan so that you will have money for acquiring the property so that it will cover the mortgage amount for the other property. The amount of loan will help you in funding the property purchase for a short period of time so that you will enjoy financial independence.
You can take the loan for a time duration of one month to 18 months according to your requirements as you will get the flexibility of choosing the amount of loan and time period. The loan should be repaid after the end of the period as there are no repayments in between the loan term. Hence, capital bridging finance can also be considered as an excellent interim financing option that will help in meeting the short term financial needs. This the best way of removing the existing obligation of cash and secure permanent financing so that you will get cash flow.