Navigation




(285)Understanding Bridging Finance

 

Bridging finance, also referred to as "bridge loans" and "bridging loans", have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word "bridge" conveys the fact that the loan is designed to get you over a temporary obstacle. A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.
Bridging finance almost always requires that you pledge some sort of collateral as security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.
Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape. The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.
Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more. In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.
Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business.


About The Author

Commercial Lifeline http://www.Commercial-Lifeline.co.uk are Commercial Mortgage and Bridging Finance specialists.
This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is included, and that the links above are intact.
articles@commercial-lifeline.co.uk

Written by: Commercial Lifeline


(286)Understanding Finance To Make Your Life Easier

 

What is finance and what do you need to know? Finance can mean different things. It may refer to your personal financial situation. It could refer to your investments or a business's investments. It could refer to a credit or loan purchase.
Financing can be involved in your life in different ways. For example, if you are going to invest in a large purchase such as a house or even a car. Large furniture purchases and credit cards all fall into these categories. Interest rates are the most integral part of financing. Why else would a company want to loan you money or offer you credit? How else would they benefit? They benefit from the interest that you have to pay in on financing your loan. There are different types of financing options available.
The percentage rate is the amount of interest that you pay. The percentage rate is the certain portion of your loan or credit that you pay back in interest. For example, if your loan was for $40,000 and your interest rate was 12.3% then you would pay 12.3% of $40,000 in interest. The interest would be added onto your $40,000 and you would pay it back via your monthly payments.
Fixed rate: A fixed rate means your interest rate will stay the same no matter what. People usually prefer these. If you can get a low fixed rate, it will stay with you even if other average interest rates are going up. Balloon rate: A balloon rate can fluctuate with the times and the stock market but depending on the situation, this can be beneficial to you as well. You will have to decide which you think is best for you.
There are different types of financing options as we mentioned earlier. Probably the most common example of finance in the United States is credit cards. A credit card allows you to make purchases with the card. The bank issuing the card will pay on your behalf and you then pay the bank back, plus the interest. The bank makes money off the interest and you get what you want right away.
The same thing applies to pay-as-you-go or rental furniture companies. There are even rent-to-own housing services now where your monthly rent can go towards buying the house if you want to stay. Financing should be a way to help you achieve something that you're going to be purchasing anyway. Financing can get you in your house quicker than saving up the cash. Become knowledgable and financing can be a tool that will serve you well.
http://www.financeh.com

DonkeyMails.com: No Minimum Payout
About The Author

Kathleen Sutera has created an all inclusive website for Everything About Finance:
http://www.financeh.com
kathleen@financeh.com

Written by: Kathleen Sutera


(287)Understanding UK Bridging Finance

 

Bridging finance, also referred to as "bridge loans" and "bridging loans", have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word "bridge" conveys the fact that the loan is designed to get you over a temporary obstacle. A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.

Bridging finance almost always requires that you pledge some sort of collateral as security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.

Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape. The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.

Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more. In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.

Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business.


About the Author
Commercial Lifeline are Commercial Mortgage and Bridging Finance specialists.

This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.


Written by: Commercial Lifeline


(288)Unique homes hard to finance

 

Somewhere we had gotten the idea that the perfect home for us would be a steel frame, metal building. Unique, yes. Hard to finance, definitely.

Fifteen lenders turned us down when we found an existing metal home to purchase. Many considered the property as unconventional. Some considered the home an agricultural building. Most wanted at least 50% down on the property. The ones that didn't mind about the home, didn't want to finance a property with five large barns and cattle pens. They considered it a commercial property.

Talk about frustrating. We turned to a small town bank near the property and found that they were more than willing to finance the property at our terms.

You may not be so lucky. A metal home on a farm may not be what you are looking for, but you may want a 3,000 square foot log cabin with cathedral ceilings and a dance studio. Or you may be looking at building something totally unique.

Lenders don't just look at you, they also make approvals based on the property. The property is their collateral in case you default. You can have a great property and be a lousy borrower, or an excellent borrower with a lousy property. You won't get anywhere. You have to be a good borrower with a good property to get good terms.

The lender is simply looking for a property that they can sell quickly and for as much as possible. Unique homes represent longer selling times to lenders. Foreclosures cost lenders a lot of money, so they like to only finance homes which look like the others in the neighborhood in terms of size, number of bedrooms and style.

These comparables help justify the sale price of your home. When you apply for a loan, lenders will determine whether or not the home is similar to the other homes in the area.

We consider our two-story living room wall of native rock and barn exterior reflective of our lifestyle. But it isn't in the top-ten list of home amenities in the area. The lender's view: if there is a need to sell quickly the home may not get full value.

Unless an appraiser can find several homes like yours in the immediate area, the appraisal for the property is likely to be less than you want. The lender will not lend beyond the appraisal value.

The lender will make the mortgage based on the lower of the sales price or the appraised value. If your sales price is $200,000 and the appraisal is $150,000, the lender will base your loan on the $150,000. If you put 20% down, the maximum loan you could receive is $120,000. You would have to come up with the $80,000 difference at closing.

You should be wary of unusual upgrades and unique designs. You also need to be sure that you can resell the property if you need to. If you aren't sure of the marketability of something you are adding to your property, call a local broker and remember that one person's treasure may turn off a potential buyer's lender.

Copyright 2009 #1 Loans USA


About the author:

Martin Lukac, represents #1 Loans USA http://www.1loansusa.com a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. For daily mortgage rates please visit http://www.RateEmpire.com

Written by: Martin Lukac


Global Peace Mission

 www.oqasa.org

oqasaorg@gmail.com

 


Category

  • Selected category
  • English Literature
  • Nuclear Physics
  • Economics
  • General Spiritualism
  • Urdu Literature
  • Society and Culture
  • Law and Order
  • Medical and Health
  • Politics

Departments

  • OQASA ADMIN WING
  • OQASA IT WING
  • OQASA PRINT MEDIA WING
  • OQASA RESEARCH WING
  • OQASA PUBLIC COORDINATION WING
  • OQASA VOICE WING
  • OQASA PUBLICATIONS
  • The Best Traffic Exchange EA Builder

Links