IBN Private specialises in short-term, secured private lending. Bridging finance is one of the many finance options amongst, land banking and purchasing of corporate assets where private lending is especially beneficial. If you’re in the property market, time isn’t always on your side. If you need funds to fill the gap between buying and selling, bridging finance is an ideal solution.
Bridging financing is a temporary fix for a certain kind or debt, ranging from $500,000 to $250 million. These loans are frequently utilised by residential and commercial developers to buy land in highly competitive markets when time is of the essence. Bridge financing is a loan with an extremely short loan duration and interest only payments. Commercial real estate purchases typically employ bridging finance to quickly close on a property. For instance, a company might not have the money to buy new commercial real estate until they have sold their current one. During this time of transition, the bridging loan gives you access to money to pay for the acquisition of the new space. The deposit of your loan is based upon the value of each of the properties, the anticipated loan period and the borrower’s ability to repay the loan.
In exchange for the ability to buy a new commercial or investment property before you have sold an existing property or asset, means bridging loans are typically more expensive than a long-term facility. Additionally, they let you capitalise the interest so that you won’t have to pay it while looking for a better option for your company. Similar to a construction loan, a commercial bridge loan can be used to renovate a business property. In reality, bridging loans may be more accessible to real estate developers than commercial mortgages when they are looking to buy a property that requires extensive renovation.
When it comes to purchasing a commercial property, traditional financing choices are frequently prolonged and demanding. If you timed the sale of your current home poorly, you would have had to pay thousands of dollars in moving and storage costs. Many people ask for bridging loans to avoid the headaches of having to organise alternative financing. Several Australians are seeking bridging finance for property development with private lenders over conventional banks to avoid the extra hassle.
In these situations private lending is the better option. Bridging loans don’t require financial information and are asset-backed. It is a solutions-focused strategy to capitalise on market cycles at advantageous moments. You might be able to avoid moving into a rental home to make up the timing gap if you take out a bridging loan. It frees you up to time the market to your advantage because you won’t have to worry about finding a new home quickly. Additionally, profit from bridging loans in a rising market as they enable you to buy more effectively and sell more profitably.
IBN works closely with our panel of funders to process your loan application as soon as possible. We make the loan application procedure as seamless as we can because we know that “time is money.” Every step of the journey, our knowledgeable staff helps you and keeps you regularly updated on the status of the loan.