Get instant funding for your business with HomeSec Bridging Loans

Whether your business needs a cash flow boost or you are looking to expand your business, bridging loans are a great solution to assist your business. Bridging funding is one of the most helpful ways of accessing the equity in your property to assist with any worthwhile business purpose. HomeSec Bridging finance can be taken for terms of up to 12 months. At this time, the borrower repays the bridging finance in a lump sum by either sale of the property or refinance.

Different Types of Business Bridging Loans

There are primarily two types of bridging loans available.

• Capitalised fees and interest

Capitalised fees and interest with bridging funding comes in handy when you do not want to make any monthly payments towards the loan. HomeSec will offer you bridging funding for six months with all costs capitalised into the advance. There will be no ongoing payments, just a lump sum with the loan expires. Terms can be from 1 month to 6 months.

• Interest-Only Bridging Loans

Interest-only bridging loans are available for a 12-month term. Interest is paid on a month-to-month basis, with the principal amount repaid with the loan expires in 12 months. In most cases the loan can be extended beyond 12 months by just continuing to pay the monthly interest.

How Does Bridging Loans in NZ Work?

HomeSec allows the borrower to capitalize the interest and costs on bridging funding. It will relieve the borrower from making any repayments during the term of the bridging loan. If you select to capitalize the interest, you will have a lump sum payment at the end of the loan term, however extensions are available.

HomeSec offers you the term of up to 6 months for the capitalised loans, bridging loans need to have an exit strategy, this is normally from a refinance or sale of the property.

Requirements for Bridging Loans

Getting approval for one of our Bridging Loans is simple as we look for equity available in the property being used as security, provided you have sufficient equity then you are almost certain to be approved and funded in as little as 24 hours. To qualify we just need to see the following documents:

• Have a registered NZBN
• Rates notice
• Current mortgage statement if applicable
• An exit strategy
• Photo ID
• Equity in property

The requirements for the best bridging loans never change based on your business’s needs. They can be used for any worthwhile business purpose and can be secured by residential property, commercial property of vacant batches.

SEE IF YOU QUALIFY

Things to consider before applying for short-term bridging loans

Bridging loans provide quick access to funding that a business needs.  However, consider the following questions before taking out short-term bridging finance. The answers to these queries will assist you in applying for the correct bridging funding type and the perfect amount you should apply for.

• For how much time you will require the funds
• Is there available equity in property
• How will the funds be used in your business
• How will you repay the loan at expiry

Benefits of Bridging Loans

Let us now check out the advantages of getting bridging funding as below.

• No repayments during the loan term means your cash flow is freed up for other uses.
• Take advantage of a business opportunity that is too good to miss
• Funding can occur in as little as 24 hours.

Case Study of best bridging loans

Are you still getting confused about bridging funding? A practical example will surely clear all your doubts.

A couple owns a home in New Zealand and wants to purchase a new business, they are considering selling their current property. They want to use the equity available in their house to purchase the business and the loan will be repaid from the sale of their house. They believe the house will sell within 6 months. Having no payments on the loan will allow them to establish the new business without having to worry about monthly loan payments. When their house sells the loan will be paid out in full.

Their existing property is valued at $700000, and their mortgage is $350000. The business they want to purchase is a cafe and the asking price is $100000. As Homesec will lend up to 75% of the value of the property there is sufficient equity to buy the business and capitalise all the costs of the bridging loan.

How to Apply for Bridging Loans at HomeSec?

It is easy to apply for bridging funding with HomeSec in the following ways.

• Apply online for bridging funds through our website
• One of our financial specialists will call you regarding the application
• They will ask some basic questions regarding the application
• You have to submit the necessary documents for verification and approval
• If you meet all the eligibility criteria and all your documents get verified, your application will get approved
• HomeSec will transfer the funds within one to 2 business days

So, apply for a bridging loan with HomeSec and realise your business dreams today!