Short-Term Commercial Bridging Loans
Short-term commercial bridge loans are an essential financial tool for businesses and investors needing immediate funding. These loans potentially provide a seamless solution for covering the gap between the purchase of a new property and the sale of an existing one.
Commercial bridge loans are often designed for time-sensitive transactions, providing the flexibility and speed necessary to capitalise on opportunities without the delay of traditional financing processes.
Private lenders often recognize the urgency and complexities involved in such transactions, offering solutions designed to help businesses and investors navigate financial transitions smoothly. Many of our services aim to provide quick and reliable funding for business and investment needs.
How Does a Bridging Loan Work?
To bridge the gap between purchasing a new property and selling an existing one, a bridging loan provides immediate funding. Bridge loans provide quick capital for urgent property purchases or other business needs, typically secured against existing assets. This type of loan is ideal for situations where immediate funds are required but the liquidity from a sale or long-term financing is not yet available.
Application Scenarios
Bridging loans are beneficial in scenarios such as purchasing property at auctions, funding development projects, and securing new investments. They are particularly useful when there is a delay in accessing long-term financing or when the sale of an existing property is pending. By leveraging a bridging loan, businesses can maintain cash flow and capitalise on time-sensitive opportunities without financial disruption.
Benefits of Commercial Bridging Loans
Flexible Funding Solutions
Bridging loans offer significant flexibility and are suitable for diverse business needs. These loans can be tailored to meet the specific business circumstances of each client, ensuring that their unique financial needs are addressed. Whether funding unexpected expenses or seizing investment opportunities, these loans may provide the necessary capital promptly. This flexibility is crucial for businesses that need to act quickly in dynamic markets.
Speed and Accessibility
One of the key advantages of bridging loans is the approval process. Bridging loans are often seen as quick financing options for businesses or individuals facing urgent financial needs. In many cases, these loans may be approved and funded more quickly than traditional loans, sometimes within a few days, depending on the specific circumstances and lender. This speed is invaluable for clients needing immediate financial assistance, allowing them to secure properties or investments without delay.
Credit Flexibility
Some lenders may cater to clients with varying credit histories. In many cases, bridging lenders tend to focus more on the property as collateral than on the borrower’s creditworthiness, making such loans accessible to a broader range of clients. Our bridging finance options are available to a wide range of borrowers, including those with impaired credit. This approach gives more businesses the possible access to necessary funding, regardless of credit standing.
Maxiron Capital’s Flexi Bridging Loan
Typical Loan Amounts and Terms
We offer bridging loans whose amount may range from $250,000 to $12 million, with terms typically up to 6 months. These loans are designed to provide funds for transitional periods.
Interest Rates and Fees
Interest rates on commercial bridge loans vary based on the loan amount, term, and security offered. Our Flexi Bridging Loan option may accept a maximum LVR of 90% depending on the case. Additional costs may include application fees, establishment fees, and exit fees. It’s essential to consider these factors when planning for a bridging loan.
Repayment Options
Bridging loans at Maxiron Capital can offer flexible repayment options. This includes monthly repayment, lump-sum repayments, or a combination that is agreed on. This structure allows businesses to manage their cash flow more effectively.
FAQs
Bridging finance in Australia provides short-term loans to cover the gap between buying a new property and selling an existing one. These loans are secured against existing assets and are typically repaid once the sale is completed.
Typically, a deposit is not required for bridging loans, as the loan is secured against the equity in the existing property. However, each case is assessed individually.
Upfront fees may include an application fee, establishment fee, valuation fee, and legal fees. At Maxiron Capital, our fees are transparent, ensuring clients understand all costs associated with their loans.
