Promptness is one of the primary points of appeal with fast-access bridging finance. Particularly when compared to traditional High Street loans, bridging finance can be arranged exponentially faster.
But exactly how fast is ‘fast’? When capital is needed in a pinch for any purpose, exactly how long does a bridging loan take to arrange?
Different Policies and Procedures
As with all financial products, policies and procedures vary significantly from one lender to the next. In some instances, it is possible for a lender to release funds to a borrower within just a few working days. Decisions are routinely reached and returned within 24 hours ensuring applicants know exactly where they stand in terms of eligibility.
From a more general perspective, the vast majority of bridging loans are underwritten within two weeks. Some of the sector’s slower lenders can take up to four weeks to process applications, but this is comparatively rare.
This is why applying for bridging finance via an established and experienced broker is essential. Your broker will help you pair your requirements with a top-rated lender, streamlining and accelerating all aspects of the application process.
Why do Some Bridging Loans Take Longer than Others?
There are various factors that can affect the promptness of a bridging loan. Each of the following should therefore be considered carefully when looking to access the capital you need in a hurry:
Choice of Lender. Some lenders are inherently quicker in processing applications than others. The rigorousness of the eligibility checks carried out can play a major role. As can the capacity of the lender to deal with high application volumes during peak times.
Application Strength. The more convincing the case you present, the higher the likelihood of the lender authorising your loan promptly. This means providing all the necessary documentation and evidence to support your application at the time it is submitted, rather than being chased up for missing documents at a later date.
Negotiations. The process of negotiating a good deal can also take time, particularly when larger and more complex loans are concerned. Your broker will conduct a full market comparison on your behalf, before negotiating the best possible deal with a reputable lender.
Conducting Surveys. It may also be necessary to organise a formal survey of the property being used to secure the loan. If so, a surveyor approved by the lender will need to conduct a detailed inspection of the property and present their findings accordingly which can slow down the process.
Exit Strategy Issues. It is essential to provide the lender with a clear and convincing disclosure of how you intend to repay the loan and when. Until they are 100% confident they will get their money back on time, they are unlikely to release the funds you need.
For more information on any of the above or to discuss the benefits of bridging finance in more detail, call anytime for an obligation-free consultation with a member of our team.
