What Are Bridging Loans And How Are They Funded in 24 hours
A Business Bridging loan is where you borrow a fixed amount of money for a short period of time (ie: 1 – 6 months), and pay it back in a lump sum at the end of the loan term. The ability to repay the loan with a lump sum is known as an Exit Strategy.
The most common Exit Strategies for Bridging Loans are a total refinance of our loan and the current 1st mortgage, or the sale of the security property or any other asset.
What are the unique features of a HomeSec Business Bridging Loans?
SPEED – Firstly, with a HomeSec Business Bridging Loan, you can get from $20,000 to $5,000,000 in just 24 hours from the time you apply.
NO PAYMENTS – Best of all, you won’t have to be burdened with any loan payments during the loan term, because there aren’t any.
The interest is capitalised for the term of the loan, which means it is just added to the loan amount needed and repaid at the end of the loan term, rather than you having to pay monthly instalments during the loan term.
NO FINANCIALS – As we are not asking you to service the loan repayments each month, we therefore don’t need to see your cashflow records or any financial statements.
Our message to you is simple – as long as you have
sufficient equity in real estate & a business purpose for the loan, we will fund you in 24 hours. They are that simple!
Why a HomeSec Business Bridging Loan is so important?
Let me explain a few quick things about HomeSec Business Finance.
Firstly, we are all about speed, service, honesty and transparency. When you take the simple 60 second step to Apply Online, one of our fantastic HomeSec team members will be in touch with you within no time
(during business hours) to have a quick, No Obligation chat with you to discuss your business loan application. It should take no more than a few minutes.
Secondly, once you’ve applied, we ask that you DON’T apply with any other lenders until we can chat with you. Now I don’t say this so we can do a hard sell on you.
No, it’s simply because… unlike us, most other business lenders will automatically do a credit check on you as soon as you apply. The more hits on your credit file, the lower it will make your credit score, which will make it much harder for you to get a loan. (many people aren’t aware of this).
It’s our aim to help as many small and medium sized businesses as possible, and HomeSec Business Finance have been successfully doing just that since 2004, so let
me assure you, you’ve come to the right place!
Bridging Loans in Australia from HomeSec
Bridging finance helps the borrower access the available equity in the property for any worthwhile business use while they wait for the sale of the current home. They can also be used to purchase commercial property or investment pending the sale of another property. While selling and buying real estate, it is not always possible to match the settlement dates. That is why borrowers need bridging funding to assist with completing the transaction.
Bridging funding are short-term and are a maximum of up to 12 months. The best advantage of this type of loan is that you do not have to make any repayments till you have sold your previous property. However, you will have the option transferring any residual debt to the new property at the end of the term of the bridging loans. Thus, by applying for this finance, you will never miss an opportunity.
What is the working mechanism of Bridging finance?
The lenders calculate the bridging loans based on the amount on your existing mortgage along with the buying cost of the new property or the amount required for your business. The total figure is known as peak debt. For instance, if you have a $250,000 loan on the existing property and are buying a new asset of $600,000, your peak debt will become $850,000.
The lender will repay the peak debt once your property sells, if there is residual the remaining amount will be your short-term bridging loan, secured by the new property provided there is sufficient equity. The bridging finance companies in Australia are interest-only loans. Thus, you only have to pay the interest rate on your ongoing loan amount. Lenders capitalize on this interest you have to pay after selling your current home. During this time, short-term bridging finance can be refinanced into standard finance.
Various types of bridging loan
There are primarily two types of bridging funding which is as follows.
Capitalised Bridging Finance
Capitalised bridging finance is when all fees and interest on the loan are added to the net funds a borrower needs. Capitalised bridging finance in Australia is available to borrowers who may not have sufficient income to service the loan and can have the full loan are paid from the sale of their property at a fixed settlement date. Capitalised bridging finance comes with a pre-agreed date by which the borrower has to sell the current property and repay the loan. However, if required this loan can be extended.
To get approval for the capitalised bridging loans, the total debt against any property offered as security cannot exceed 75%, this needs to include any current mortgage on the property. The borrower should also submit all the information regarding the property they are selling. The funding includes all costs such as application and legal fees to add to the loan cost along with the interest. Homesec can assist with bridging finance for any business transaction, for property purchases we work with business partners who are able to assist.
Interest only Bridging Finance
Interest only bridging finance is perfect for those borrowers who have sufficient turnover in their business to service monthly interest payments and need a longer loan term. These loans are for a 12 month term and gives the property owner sufficient time to sell the property within that 12 month period. Borrowers need to provide sufficient evidence that their business can meet the interest payment with a fast bridging loan before approval is obtained.
You should also need to have significant equity in your existing property and an alternative exit plan if you fail to sell your existing property. You should go for interest only bridging finance in Australia if you have not yet exchanged the existing property selling contracts or expecting some delay in your settlement.
For how long does the best bridging loan last?
Bridging loans usually from 1 to 6 months from the date of approval. Though in some cases, HomeSec offers bridging funding for up to 1 year. All fees and interest can be capitalised into the bridging loans in Australia.
If you urgently need funds for your business and have your property on the market then this is a great option to utilise the available equity, when the property sells the entire short-term bridging finance is repaid at settlement date.
How to qualify for the best bridging loan from HomeSec?
You can apply online for the bridging funding from HomeSec without difficulty. It takes only hours to assess your application and funding can be arranged in one to two business days. We will evaluate the information provided and aim to get you funded as quickly as possible. You will qualify for fast bridging loans if you meet the following criteria.
- Have sufficient equity for bridging loan approval
- Meet our lending requirements
- Do not need more than 6 months to repay the loan
- Can pay interest only on a 12 month option
- Current property is listed for sale
Short-term bridging loans are one of the best alternatives if you need quick funding to use in your business and have sufficient equity available. HomeSec is one of the renowned bridging finance companies in the finance sector for years and offers the best deals to borrowers. So, fill out the form or speak with our lending professionals to find out the procedure for bridging funding approval.
Who needs a Business Bridging Loan
HomeSec Business Bridging Loans have been used by business owners of literally every
business type, across all industries.
Aviation – Dental & Medical – Hospitality –
Automotive – Property Developers – Builders and Tradies – Ad Agencies – Beauty – Telecommunications – Scientific Research – Accounting & Law.
If your business has a need for a large sum of funds in a hurry (ie: by tomorrow), then a HomeSec Business Bridging Loan is generally the ONLY solution.
Our clients know that the benefit of getting the funds in 24 hours and without the hassle and
paperwork, far outweighed the cost of the funds.
contract, but was still owed for past projects and needed a $500k to cover wages and get started. An importee received a call from a
manufacturer that he had an oversupply of stock that he wanted to sell cheap, to the first buyer with the cash. We funded the $800k stock purchase and the importer tripled his profit. A consultancy firm was on the brink of collapse due to a huge unpaid tax debt. No one would help. HomeSec paid out their tax debt in 24 hours and saved them from ruin.
If you have sufficient equity in real estate, you are almost certain to be APPROVED and funded within 24 hours.
Frequently Asked Questions
The cost of a bridging loan is determined by the loan amount and loan term, we have a no obligation letter of offer which will set out the exact cost of the loan. This is issued once an application has been lodged.
You can borrow up to a maximum of 75% of the value of your property, this must also include any current mortgage you have.
We have an interest only 12 month loan option, or you can choose to have all interest and fees capitalised into the loan.
Interest rates start from 1.95% pm.
Our loan terms range from 1 month to 12 months, however extensions are available.
Yes, credit history is not relevant to our funding, however in some cases we may require any court judgments to be repaid from the loan proceeds.