Moving office can be a difficult time, particularly if you do not have the money needed to make a down payment. However, with development finance and bridging loans available, you can place an old office up as collateral in order to secure the finances that you need. Though it takes time for a loan to be approved, this is the perfect way of ensuring that your finances are in order at every stage during the move.
Running low on finances
Though there are a number of loans available to a business that is short on finances, bridge loans are the ideal way to achieve stable finances to help yourself out of a financial emergency. With a 12- month repayment period and no maximum amount that can be borrowed, this style of loan is highly beneficial for either a small start-up business or an established company to provide you with an affordable repayment option to keep your business running as it should be until the loan is paid off.
Bridging loan types
Though bridging loans are affordable, it is important to note that there are two different types of bridging loans that can be better suited to your business model.
The first type of bridging loan that is available is a closed bridge bridging loan which requires the loan to be paid back in full by a set date. This is usually within an agreed time period that can extend up to 12 months. This type of loan would, therefore, be better suited to those that are looking to buy or sell a property as it can be paid back quickly when the contracts are signed.
The other type of bridging loan that is available is the open bridge bridging loan. This is a far more open-ended loan and allows you to repay the full loan when you are ready. However, the lender typically expresses how long they are willing to wait, which again could be capped at a year. This type of bridging loan is, therefore, better suited to project or funding for a financial emergency as this it can be repaid with no completion date.
Before committing to these loan types, it is important to identify which one could work best for the current situation of your business and begin to contact a lender. You will then undergo a series of eligibility checks to ensure that your business is financially stable enough to lend the money to.
Variable repayment methods
The final reason that a bridging loan is highly beneficial for a number of customers is due to the repayment methods. This is essential to the daily operations of a company as you can make the loan work for your business and have it paid back within a few months. This is ideal particularly for a small business as you have more financial freedom to pay back a loan when you receive the right amount of income.
With a number of benefits to this style of loan, your business can find the finances you need in a financial emergency to help you resolve the issue and get back up on your feet.