If you consider your loan options and have come across bridging finance loans, you have indeed uncovered a good option. To understand how bridging finance works, you need to understand what is bridging finance. Bridging finance is ultimately a short-term loan application secured against future income due to a transaction involving property sale, otherwise known as collateral. In the case of Xclesior, this involves vehicles that are used as collateral.
Bridging loans are incredibly convenient, as they offer relatively easy to acquire assistance and can be obtained faster than standard loans. Today we’ll explore everything you’d need to know about bridging finance. Including; what is bridging finance, how to decide if you need bridging finance, XCELSIOR’s bridging finance solutions, the benefits of bridging finance, what happens if you can’t pay back your loan and if you need a credit check for bridging finance.
When should you use bridge loan financing?
Bridging loans are most commonly used in the following situations:
- Your cash flow is in trouble while you wait for the money to be paid out to you.
- You need money right now for an emergency or unforeseen expense and cannot wait anymore for your usual funds.
- You have sold your home and are waiting on the money to be paid over to you and need cash quickly.
- You need capital to start a new business venture.
- You have a vehicle that is not currently being used and would benefit from a short-term cash solution.
- You want to buy a property at an auction.
- You need cash to refurbish a piece of property to sell it.
- You’re facing repossession of an asset and can hold off with a quick cash injection.
How to decide if you need bridging financing?
While there are various places that you can go to get bridging cash, it is best to weigh up your options before deciding. The interest rate and repayment terms are often more important than the actual amount that the institution is willing to loan you. Taking a hefty lump sum will only work against you if the interest rate attached is too high, while if you’re uncertain of your financial future, extended repayment terms can become a problem. We always advise our clients that if you are making a loan against a collateral item, make sure that you can afford to lose the item if you cannot repay the loan amount in the end. This makes secondary vehicles or leisure assets the perfect form of collateral. Neither will have the ability to completely change your normal living circumstances in the unlikely event of failure to repay.
What types of collateral does XCELSIOR accept for bridging financing?
- Jet Skis
You should also contact us if you have a vehicle that does not appear on this list that you want to use as collateral. Our friendly and knowledgeable bridging finance specialists will assist you every step of the way.
What are the benefits of bridging finance?
There are three main benefits to bridging finance that make it a better solution than a long term loan or credit loan, these are:
- The loan amount is received faster than a conventional loan, making it an excellent solution for those who are cash-strapped.
- It is more flexible in terms of those who are blacklisted; it is more flexible in terms of repayments and interest rates.
- It gives your business time for a sale to go through to make a profit, if you’re waiting on payment by a creditor, this is a great solution.
How do our bridging finance loans work
- We can loan you up to 50% of the value of the assessed vehicle.
- The process will only take between 30 and 45 minutes to complete, from start to finish.
- We loan out minimum amounts of R5 000 and maximum amounts of R250 000.
- All collateral vehicles are kept at our safe and secure premises until your loan amount is settled.
- Approvals finalised will be paid out on the same day.
It’s that simple, visit XCELSIOR loans and apply for a loan to get started.
What happens if I can’t pay back my bridging finance loan?
We simply sell the vehicle to cover the costs. If any additional profit is made, it’s paid directly over to you. We keep it clean-cut and straightforward – just like our repayment terms. Choose what suits your financial situation best and enjoy the convenience of a loan that is designed to cater to your needs – after all, that’s the point of a financial helping hand, isn’t it?
Do I need a credit check for bridging finance and what if I’m blacklisted?
Individuals find it increasingly difficult to acquire financial aid from family members; COVID-19 and the repeated closures of businesses have made this even more of a reality. It is just as difficult to acquire a loan from financial lending institutions due to the strict background checks and rules applied within this industry. At XCELSIOR, there is every reason to believe that you will be approved for your loan quickly and without having to undergo a credit check.
Most mainstream lending institutions will base their loan offer and the attached interest on your credit score. The lower your credit score, the higher you can expect the attached interest to be. In some cases, your credit score might be too low or you might have been previously blacklisted, which immediately excludes you from obtaining a loan. With XCELSIOR you won’t require a credit check and we welcome blacklisted applicants. Our primary focus is the collateral asset, as this underpins our loan model.
The solution: XCELSIOR Loans bridging finance solutions
At XCELSIOR, we often encounter individuals who are desperate for bridging finance and simply don’t know where to turn to. This is where XCELSIOR shines. We provide our clients with solutions, not more problems. We will help you to overcome your financial crises by offering you the opportunity to take a loan out against your car including other forms of collateral. This type of loan has a simple approval process, as you are providing collateral.
Sometimes, there is not enough money available at the end of the month to cater to unexpected expenses. Whether you would like to start up a new business or pay off an account, chances are that gaining access to instant funds is not going to be simple.
We allow our clients to choose a payment method that works best for them. Either you can settle the full amount by a set date or pay off the amount with interest in affordable monthly instalments. The choice is yours!
There is no waiting around for hours for approval and once you have accepted the loan quote, the process is finalised with efficiency and professionalism. Regardless of what you need your loan for, we will ensure that is promptly provided.
If you are looking for the best bridging finance that requires no background checks or credit ratings, then you have come to the right place. At XCELSIOR, we will ensure that you are assisted with achieving the cash that you need when you need it. Contact us via email or call +27 (0)12 997 1062 or +27 (0)12 997 3946, to discuss your needs and requirements with our knowledgeable consultants today.