Time is usually of the essence in the financial world, and hesitating often results in missed opportunities, monetary losses, or both.
Here at Quantum Finance Australia, we know how important it is for our clients to have resources at their fingertips.
Many opportunities will only come along one time, so we do all we can to make sure no prospects fall by the wayside.
To help our clients stay at the top of their game and ahead of the competition, we offer the option of bridging finance.
What is Bridging Finance?
Bridging finance is a quick solution to a brief cash flow deficiency.
One of the most common situations rectified by bridging finance is when a client is in the process of selling the property while buying another allotment.
In cases like this, the equity in the owned property is inaccessible pending the sale of the holding.
At the same time, the client cannot move forward with purchasing the second property because they need the money from the sale of the initial holding.
It is by no means an unusual situation, and our associates have experience brokering the appropriate financing to assist our clients.
To satisfy the financial requirements needed to buy land, Quantum Finance can seek out a privately funded option
to provide our client with the funding necessary to purchase the second property while waiting on the first one to sell known as bridging.
How are Bridging Loans different from other kinds of Loans?
Bridging finance differs from other kinds of funding in a few different ways.
- The interest rate on the loan is slightly higher than other types of financing
- A bridging loan focuses on the short-term solutions a client needs and the typical bridge loan lasts 12 months or less
- We structure bridging loan as an interest-only form of financing the final payment will include the principle and remaining interest
- Upon your presentation of the titles and valuations, funds are available in days
- The loan to value ratio differs slightly for a bridging loan and (including capitalised fees) the maximum LVR is as follows:
- Residential property- 80 per cent
- Industrial/business property- 70 per cent
- Undeveloped land- 60 per cent
What type of Borrower does Quantum Finance
Prefer for Bridging Loans?
While we make all of our loan approvals on an individual basis, those suited for bridging loans include:
- Corporate representatives
- Individual borrowers for business-related purposes
What are some of the Common uses for Bridging Loans?
While we frequently cite the example of purchasing one property while selling another, this is not the only use for a bridging loan. As the name suggests, bridging loans are an excellent way for our clients to get the funding necessary to complete various aspects of their businesses.
- Purchasing new property while waiting on a sale to close
- Making payments to creditors
- Refinancing a current debt if the interest rate is advantageous
- Assuming sole control of a company by purchasing the shares from other associates
- Payment of ATO debts
- Expanding or upgrading a business
- Completion of construction projects after providing supporting security
Why use Quantum Finance instead of a bank for my Bridging Loan?
Working with large financial institutions and banks is frequently known as a slow process fraught
with dead ends, delays, and a disregard for your needs.
We meet with hundreds of clients who came to us after becoming frustrated in their attempts to navigate the world of big banks.
Because we facilitate your loan by working with numerous sources of private funding, we can meet your needs efficiently.
The Quantum Promise - Fast, Reliable, Knowledgeable Service
- We respect our clients and the working relationship we share.
- Your satisfaction is our priority.
- We cannot afford to be as slow as banks. The world of finance is, by nature, fast paced. If we fail to work expeditiously, we are hurting our clients as well as our own business and reputation in the financial world.
- We facilitate loans for our customers via private lenders allowing us to look at the terms of several financiers to find a good match for your circumstances. Working among private lenders also allows Quantum Finance flexibility and latitude with the loan details.
- Our 15 plus years in the area of private financing gives us an edge over large banks. We understand who our clients are and what they would like us to do for them.
- Quantum Finance personalises our service. Options which are great for one client are not for every client. So, we will not try and force you or your financing into a cookie cutter mould.
- We have extensive knowledge of low doc and non-conforming loans, so you do not need to wonder if our associates will handle your loan correctly.
- Quantum Finance’s associates are available to help answer questions and address concerns long after your financing work is complete.