Types and Benefits of Bridging Loans

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Bridging loans are also referred to as caveat or swing loans. These loans cater to short-term financial needs. This loan, therefore, plays a vital role when one needs urgent cash. While there are some formalities required before one can receive the money, no paperwork is necessary to get the loan. It is a stress-free process of raising some quick funds.

Bridging loans in Singapore is available for both businesses and individuals. Anyone can acquire these loans for several reasons. This includes raising shorter business capital, paying tax demands, property renovation, buying a property at an auction, constructing buildings, buying land, etc. Once you successfully secure the loan, the repayment is in a lump sum and the interest monthly.

 

Types of bridging loans

These loans come in two types, namely open and closed bridging loans.

 

Open finance

This type of bridging loan is designed for borrowers who are selling their current property. With this loan, there is no specified date for loan reimbursements. Also, one can utilize this open loan for other purposes except buying properties.

 

Closed loan

This type of loan is for people who have sold their properties but have not received the payment. In this type of loan, lenders set a specific date to pay back the cash. For one to qualify for this loan, they must provide the contracts.

Bridging loans Singapore comes in handy in the time of need. Below are the four main benefits of these loans.

 

Quick approval

Unlike other types of loans, this loan takes limited time for approval. Many lenders will approve the loan within the shortest time possible. Lenders know that individuals looking for this type of loan require immediate assistance. In most cases, you will have your bridging loan within 24 hours.

 

Short-term financial assistance

If you need emergency financial assistance, then bridging loans is what you need. You will access some quick cash without much stress. The repayment period is between one and 12 months, meaning it is a short term loan. However, before seeking this loan, have a good plan, and use the money wisely as the short repayment time can stress you.

 

Credit history is not compulsory.

Many people fail to get loans because they have a bad credit score. However, with bridging loans in Singapore, you need not have a good credit score to get a loan. This is because the approval is based on security and not a credit score.

 

Loan amount based security or guarantee:

When seeking a bridging loan, the amount you get depends on the value of the collateral. For example, if your collateral is a residential or commercial property, you will get an amount close to that property’s value. That is the only limitation to what you can get. However, keep in mind that if you fail to repay the loan, then the lender will sell or auction your property to recover their money plus interest.

 

Conclusion

If you are looking for bridging loans Singapore, then look no further and contact aero credit. We are a licensed money lender with many years of experience and a good reputation. We process bridging loans within 24 hours, ensuring that you get your cash as fast as possible. With our services, you have a reliable partner whenever you need quick cash for short-term needs.

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