A bridging loan is designed to arrange funds quickly, often to complete on a property in a short amount of time before a long-term finance solution can be made. Because of this, it’s a common question to want to know exactly how long a commercial bridging loan application will take if you’re going to apply for this finance option.
How quickly can I get bridging finance?
The only way to answer this question is to point out that different lenders have different application processes, so timescales may vary depending on who you go with. Typically, an application for bridging finance takes anything from a few days to a few weeks.
With ASG, it’s possible to make funds available within 48 hours of your initial enquiry, assuming we can arrange a site visit quickly.
If you’re shopping around and comparing rates, it’s worth factoring in the extra time it may take to go through a more rigorous application process with some of the cheapest lenders.
What can delay a bridging finance application?
Bridging loans can be affected by various factors such as the type of security offered and the level of risk to the lender. Applications that require more thorough checks and valuation reports are going to take longer to complete so it all depends on your circumstances.
Other delays include legal searches. While there are often other solutions and ways to get around this that can save time off the application process, these can all increase the risk to the lender, which means it can increase the amount you need to repay.
How can I speed up a bridging loan application?
Working closely with your lender will help you make sure the application process goes smoothly, but remember that there’s only so much they can do. When you begin your full bridging loan application, your lender will let you know exactly what is needed to progress such as documents, valuation and confirmation of your exit strategy.
If you know what to expect, you can be prepared and have everything ready to progress your application as not returning requested items will only slow down the process.
Bridging loans are the ideal finance option if you need access to short-term funds to bridge the gap until long-term finance can be arranged but they may not always be the quickest option depending on your circumstances.
If you’re looking into your financial options and who can get a bridging loan, we always advise speaking to the experts first so you have a clear picture of what the options are for your specific circumstance and can find the most suitable solution for you. Get in touch with the team at ASG here