When you need a home loan or to extend your business, or even when a partner decides to break with the partnership and you need capital to continue your business, until the bank releases a line of credit that meets your need, you you have the chance to find a consultant to help you find a loan until you get your full credit.
Always remembering that briding loans is a short term loan and is not recommended for long periods
Ex: you want to buy a house of 200 thousand, but you only have 30 thousand, so you ask the bank for a loan amount of 170 thousand, but until this amount is released you have to insure the property because there is a queue of people c = wanting to buy (usually happens at a house auction), then you find a briding loan that helps you find a line of intermediary credit and you can insure or buy the house until your total loan ends, usually those lines of credit of the Briding loans have higher interest rates than conventional banks, but with the crisis in the financial market, banks are giving less loans and delaying the analysis, generally these types of loans have a term of 1 to 18 months to be paid , different from conventional ones that extend for longer.
Another example is: if you have your house and want to buy another, but need a value to guarantee the mortgage of the other house, then you request a briding loan to guarantee the purchase until you sell the house you live.
In the business and business sector, brinding loans serve to help the company’s cash flow or even to open new stores.
In all cases you need a guarantee that will pay off this loan, you can use real estate that you already have.