Situation 1 - A company needs to purchase stock - If a companies liquidity is low and it doesn't have enough to buy a bargain lot of stock then house bridging finance can be used a temporary financial fix.
Situation 2 - Purchasing a property at auction - With land and property auctions it is normal that transfers of funds take place very shortly after an auction ends. If you have no commercial mortgage or loan in place then bridging finance is a perfect short term solution.
Situation 3 - Venture capital - Many entrepreneurs us this type of credit to take advantage of deals where money is needed now not in a couple of weeks. Because of the speed that these loans can be arranged in they are perfect for this type of application.
Many people don't apply for house bridging finance because they expect to be rejected, or have already been turned down by their mortgage lender. You may be surprised though as we can accept applications from all walks of life from people with CCJs County Court Judgements to people with an A1 credit history.
Now on to the important thing the cost, an example for a loan for the sum of £150000 at a rate of 1% would cost you £3000 to borrow the sum for 2 months. Obviously each case is assesses on it's own merits and rates can be lower or higher.
For more advice quotes or to apply visit Bridge Finance
Damian is the owner of many finance related websites including Bridging Loans Finance
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Source: http://www.articlealley.com/article_215643_81.html
Source: http://www.articlealley.com/article_215643_81.html