Facts About Bridging Loans and Bridging Finance

Bridging finance can be taken out on a first or a second charge basis. Some lenders use the term ‘closed’ bridging loan, meaning there is a fixed term to the contract usually applicable when completion dates for buying a new property and selling one are known. An ‘open’ bridging loan is where there is no fixed term to the contract.

Bridging loans are available for all types of client from limited companies to individuals; from those with excellent credit status to those who have found it difficult to obtain mortgages and loans, including businesses, self-employed and those with a poor credit history.

All types of security can be considered, from residential, semi-commercial and commercial properties or land. Properties can be fully or partially developed, in perfect condition or need of renovation, plus of standard or non-standard construction. A bridging loan can be taken out across a number of securities and / or a number of clients.

Uses

The traditional use for a bridging loan is to purchase a new home before a buyer has been found for the current property. This type of chain-breaking finance became popular in a buoyant and fast-moving property market. As well as increased demand from housebuyers who need to prevent a house purchase falling through, the different uses for bridging finance are now extremely varied.

Bridging finance is used for property development including site purchase, self-build projects and property conversions. In the property investment market bridging loans can be used for completing purchases quickly; for example, when property has been secured at auction clients usually only have up to 28 days to complete. They can also be cost-effective for clients wishing to acquire property for refurbishment and re-sale.

In circumstances where a re-mortgage is taking too long for whatever reason, a bridging loan can pay off the initial mortgage whilst a longer term re-mortgage is arranged – helping to fulfil any further requirements and bridge the gap.

Bridging loans can also be used for non-property related reasons – businesses may need short term funds to meet business obligation payments or to fund a special business opportunity. In fact, bridging finance can typically be used for any genuine purpose as a short-term measure.

Cost-effective and versatile

For the majority of clients the most important initial questions are: “Can you finance me or not?”, “When can I have the finance?” and; “How do I go about getting it?” They need to know the answers to these questions quickly to be able to plan ahead and make informed decisions.

Bridging loans are available from high street banks as well as non-mainstream lenders. However the latter will be much quicker to answer your questions and complete the finance in time. Typical turnaround for completion is about 7 working days (normally depending on how quickly the conveyancing is processed by the client’s solicitor or agent).

Misconceptions

A common misconception about bridging loans is that they are expensive and the client is confused about payments. The fact is, that with a bridging loan the client is aware at all times of the balance outstanding and what the redemption value will be.

There should be no up front fees and rates normally start around 1.25 per cent per month. Rates are normally chosen on the merits of the application, client status and the speed of completion required. A valuation is required in most cases and is paid for by the client. Typically, the lender will charge a completion fee of 1-2 per cent.

Payment Options

Bridging loans offer a high degree of payment flexibility. There are three main payment options:

- Predetermined monthly interest payments

- Interest payments which can be rolled-up for a set period, acting almost like a payment holiday. After this period, monthly pre-determined interest payments resume.

- At the client’s request a number of monthly interest payments can be deducted upon completion.

A useful feature of a bridging loan is that the client can repay capital at any time, thus reducing the outstanding balance and monthly instalments.

Understand the consequences

The most important consideration for introducers when advising clients on bridging finance is to understand the consequences of taking out, or not taking out, this facility for each individual case. In today’s markets a client can lose substantial sums, for example deposits, by not moving quickly enough. Also businesses can earn or lose money when a potential deal is on the table. Introducers need to be sure the client has provision to pay back the loan in the timescale envisaged. Lenders can offer a large amount of flexibility with repayments, and some lenders will convert a bridging loan into a term loan if the need arises.

New and Used Car Finance Australia-Wide

Each and every person wants to own their personal car. People usually buy a car with the help of a car loan. Different countries have different rules and regulations regarding the loans. There are certain conditions which determine the rates of interest of the loans.

If you are a resident of Australia then you must find out the conditions of car finance present in Australia. Australia is a country which is present in the southern hemisphere and it comprises of the mainland of Australian continent and some other islands.

If you are interested in buying a car in Australia then there are lots of companies which can help you regarding car finance Australia. To find out proper finance for your car you need to make sure that you take certain steps. First of all it is important to perform a good amount of research regarding these loans.

You need to find out proper details regarding the financial institutions and other companies which offer these loans. If you are looking for cheap car finance then one of the best ways to find it is with the help of comparison.

You can compare the loans as well as the interest rates of the loans on the internet. Each of the institutions which provide loans has their official website. You will find different kinds of information about these companies from their website.

There are certain car finance Australia companies which provide you with the car loans calculator. This calculator will help you determine the monthly loan payment that you need to make as well as your car purchase price.

You just need to enter the current information as required by the calculator and then you can use the graph to check out the impact of down payments as well as loan terms on your monthly payment.

You can either buy a new or used car but before doing so you need to sort out everything regarding the loan. If you sort out the finance then you will know how much money you can exactly afford to pay or spend. There are certain rules which can help you regarding car finance in Australia.

Aussie is a leading car loan company which provides a lot of information about the loans. First of all you must always try to go for the fixed monthly repayments of the loans because it can help you to stick to a particular budget.

It is also important to set the loan term so that you can afford your repayments. Some of the major car finance companies of Australia are fincar which is located in west Chatswood. You can either contact them through their website or even call them. The other popular company is finance EZI.

Why Early-Stage Startup Companies Should Hire a Lawyer

Many startup companies believe that they do not need a lawyer to help them with their business dealings. In the early stages, this may be true. However, as time goes on and your company grows, you will find yourself in situations where it is necessary to hire a business lawyer and begin to understand all the many benefits that come with hiring a lawyer for your legal needs.

The most straightforward approach to avoid any future legal issues is to employ a startup lawyer who is well-versed in your state’s company regulations and best practices. In addition, working with an attorney can help you better understand small company law. So, how can a startup lawyer help you in ensuring that your company’s launch runs smoothly?

They Know What’s Best for You

Lawyers that have experience with startups usually have worked in prestigious law firms, and as general counsel for significant corporations.

Their strategy creates more efficient, responsive, and, ultimately, more successful solutions – relies heavily on this high degree of broad legal and commercial knowledge.

They prioritize learning about a clients’ businesses and interests and obtaining the necessary outcomes as quickly as feasible.

Also, they provide an insider’s viewpoint and an intelligent methodology to produce agile, creative solutions for their clients, based on their many years of expertise as attorneys and experience dealing with corporations.

They Contribute to the Increase in the Value of Your Business

Startup attorneys help represent a wide range of entrepreneurs, operating companies, venture capital firms, and financiers in the education, fashion, finance, health care, internet, social media, technology, real estate, and television sectors.

They specialize in mergers and acquisitions as well as working with companies that have newly entered a market. They also can manage real estate, securities offerings, and SEC compliance, technology transactions, financing, employment, entertainment and media, and commercial contracts, among other things.

Focusing on success must include delivering the highest levels of representation in resolving the legal and business difficulties confronting clients now, tomorrow, and in the future, based on an unwavering dedication to the firm’s fundamental principles of quality, responsiveness, and business-centric service.

Wrapping Up

All in all, introducing a startup business can be overwhelming. You’re already charged with a host of responsibilities in which you’re untrained as a business owner. Legal problems are notoriously difficult to solve, and interpreting “legalese” is sometimes required. Experienced business lawyers know these complexities and can help you navigate them to avoid stumbling blocks.

Although many company owners wait until the last minute to deal with legal issues, they would benefit or profit greatly from hiring an experienced startup lawyer even before they begin. Reputable startup lawyers can give essential legal guidance, assist entrepreneurs in avoiding legal hazards, and improve their prospects of becoming a successful company.