3 Ways a Bridge Loan Can Benefit You
If you need short-term funding while you wait for or work to organize long-term financing, a bridge loan from private bridge lenders may be the best option for you. Here are three reasons this loan makes a good option.
1. They are fast
One of the biggest benefits of bridge loans for businesses and homebuyers is that they come together quickly because they are designed to “bridge the gap” between when financing is available but not available.
2. They help businesses cover expenses when cash flow is low
Because bridge loans are quick to get and short-term, they can help businesses that are low in cash because of a seasonal slump or that are awaiting payment for a major piece of business.
3. They allow you to place a contingency-free offer on a new home
When there are multiple offers on a home, being able to make an offer that isn’t reliant on you selling your house could make you stand out amongst the owners. A borrower can use a portion of their bridge loan to pay off their current mortgage while using the rest as a down payment on a new home. This could make the difference between you or another buyer getting your dream home, it could also enable your family to make a quick move should you be relocated or should you find your current living situation inadequate.