Everyone is happy and looks forward to every kind of improvement like buying a new car, refurnishing a new house and maybe a good vacation with the entire glamor that goes with it. To meet this dream (because most times, salaries are not enough) people have engaged in different means of sourcing for funds.
Bridge loans have been of great benefit to people
Bridge loans are those loans that play mediatory roles. They are taken for a short time and paid back. Because people going for bridge loans already know it is a short term loan, they would have made plans on how to pay back when due to avoid embarrassment.
Short term loans bring the most happiness
Short term loans have been known to bring the most happiness because the reasons why they are taken up are mostly urgent and pressing. The benefits are also reaped immediately (nothing gives joy like when your demands can be met almost immediately).
The temptation of taking more than you need is reduced
One of the major problems long term loans seekers face is the urge to take more than they need. Having in mind that the loan would be paid back in years’ time, they tend to request for more than they need. When taking short term loans on the other hand, the loan seeker is already aware of the shortness of the loan and would not want to over burden their payback plan by taking too much. They would only want to take up the loan for urgent needs.
Revenue from the project is used to facilitate repayment of loan
Some projects like purchase of equipment would need to be carried out urgently. Some equipment can lead to increase production or its efficiency. Such increased output would lead to increase in revenue which would facilitate payment of the loan in the shortest possible time.
A short term loan means affordable interest
The accruing interest is what usually drives away people from taking loans. Bridge loans are short term loans meaning a short time for interest, a short time for borrowers to get their loans for the desired project. In many ways, bridge loans help the borrower to be more organized.
Bridge loans can serve many purposes
The functions that bridge loans can slip into are enormous. It can be used for retrieving property from closure, property purchase and laying foundation for long term financing. It is easier to get long term loans when the project for which it is requested for is already underway.
Enough time is given for repayment
The apprehension that prevents people from taking short term loans is the short duration before payback. Many will be skeptic if they would ever get the money before pay day comes. Bridge loans will give you enough time to payback your debt. It has benefits that can be compared to hard money loans. One of the things that make obtaining this loan speedy is that authorization will be required only later and not before the loan is disbursed.
Bridge loans come handy when associations fail
There are times in a partnership when one party may decide to throw in the towel while the other will prefer to move on. This would mean that the asset would be divided. What is left may not be enough for the party that wants to move on and bridge loans can be used to bridge the gap of such exit till the business grows to take care of itself.
- Bridge loans can help a failed partnership to move on.
- Every business aims to reach an enviable height.
- The most difficult challenge businesses face is shortage of funds.
- Bridge loans are more speedily processed than traditional loans.
- Authorization is not necessarily done before loan is given out.
- Lenders will give you enough time to pay back.
- Loans can serve more than one purpose.
- They are short term loans.
- The gap between the wait for long term loan is bridged.
- Comes in handy when project needs urgent attention.
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