The Bridging Finance Process Explained

Spread the love

This is a method whereby your bank, or other financial institution, sends you money in lieu of your house note or future appreciation of your property. Even a vested third party can be sent funds from this account, based on who owes whom, and when the first party is expected to pay the other party.


Take for instance: suppose that you want to add-on to or renovate your home, but you don’t have the money to cover the costs. If your bank recognizes your property as “appreciable”, then it will loan the money against the house and probably assign an interest rate to it.

Another instance of the same process with slightly different arraignments: you’ve recently sold your home, but you have yet to receive the full proceeds from it. Again, the lender will loan you the expected amount – with interest – until your house is completely paid for. With this loan, you are free to buy a new home or simply use the money to support yourself and your family.

Advantages to bridging finance

Finance bridging has a lot of perks. When you give your property and money room to flow, you have the flexibility to pay bills, fix-up the house, make payments to other parties on the spur of the moment and most any other expense. One of the biggest perks of them all could be-arguably-is having the leverage to pay-off all other loans, credit cards, etc. in full-thereby foregoing all or most of the interest you would have to pay on them for some length of time.

Tons of perks

Banks widely recognize that there is a wide variety of bills and obligations that their clients have made. This is why there are so many specifically-tailored services to fill those gaps:

– Loans are available for things like home-contracting and redesigning
– Fulfilling property commissions before they’re actually sent from the client
– Small, medium and large loan amounts – and very quickly
– Loans in lieu of inheritance future funds
– Loans for businesses that need funds for importing and exporting goods and services
– Money to escape the ITC and blacklisting system
– Can be used for general investing
– Bond-refinancing
– Debt consolidations
– Just about any other loan that has assets to back them (inheritances, unfinished property acquisitions, etc.)

Banks usually have enormous financial leveraging powers. That’s great for you, because whenever a need arises where you need money on the fly, there’s money waiting at the bank to be loaned. It’s not going to come interest-free (after all, the bank wants to profit as well) but you should shop around for the best interest-rates. Don’t settle for the first interest rate you get – shop around on the internet and compare lending institutions.

However, when you take the bank’s money to pay-off debts with higher interests-and assuming you have a pretty good rate with your bank-then you’re going to save a significant amount of money in the long-haul. Think about it and give it a try. If you’re still unsure after reviewing your bank’s lending policies and offers, try borrowing the minimum amount of funds that’s allowed. Test the waters and see how well it works for you.

Source by Dave Moller

Leave a Comment

Your email address will not be published.