Business Operation
Commercial bridging loans can be adapted to better bridge the gap between buying a new property (e.g. with a motel) and waiting for a sale on existing property. Hence payments from a loan can be distributed for example, on the lease on the current. But also used for related costs - including for the newly purchased property or business. This loan availability for distribution can be important, if there is an overlap in timing of selling/buying of the two properties or business. Until the current is property is sold, and/or the new property is generating profitable business, external finance helps by preventing any monetary issues and to remain in a seamless transactional business mode.
Finance Purposes
In addition for financing property and business, bridge finance can be used specifically for -
- Property expansion/refurbishment - Increase business assets (e.g. apartments, motel units) and for personal home.
- Property Projects - Development for commercial, industrial, and residential homes and units.
- Business Capital Injection - Temporary or short term funding for business needs.
- Land Acquisition - For potential business schemes.
- Auctions - For purchase of property or small business.
- Cash-flow disruption - Urgent cash to ease or control monetary management within a company.
- Investment - Help prevent a missed opportunity by quickly buying established for sale units to rent or accommodate clients.
- Tax Payments - Easily finance any unexpected tax liabilities for your business.
- Pending sale of a family/personal home and purchase of a new residence. This can involve cash out clauses, unconditional offers, vendor obligations, and settlement or indefinite finalized dates, and open and closed finance.
Flexible Choices
Commercial Lifeline has produced a basic bridging finance guide (pdf) to help understand what is involved. Because of competition amongst lenders, and a variety of financing options including for bridging finance, perhaps consult an experienced mortgage broker or financial adviser. Doing so may well help explore options, to plan a suitable finance package that is relevant to your needs and any related business transactions.
Bridging Finance New Zealand Lenders
First Rate Mortgages (http://www.firstratemortgages.co.nz/)
Informative web site, and the company has access to private funders for large amounts of finance for assistance. This can include 1 million dollars or higher, with typical repayment terms of 6 months to 2 years, and costing based on risk assessment. Also can help with refinancing, e.g. mortgage refinance, debt consolidation, equity loans, 2nd mortgages for example. Seems you can get advice for floating and fixed interest rates, of which the company is updated. In fact plenty of information on their site, including for insurance, Kiwi Saver home deposits, property (e.g. market trends, capital value, legal info, etc), and more. Easily email or free phone contact for more information, and a clearer insight about property finance in NZ.
New Zealand Mortgage Finance (http://www.nzmf.co.nz/)
With their own funding, finance bank, and working with major banks, and other lenders NZMF can provide a loan. This includes for homes, and other types of assistance, e.g. for commercial, property development, investment, land banking, no deposit loan, and of course bridging finance. seems to provide help - with a passion, to try do their best to deliver with their expertise. Also includes for debt consolidation, second mortgages, home equity release, credit issues, previously declined loans, self employed, and more. Has calculators and can apply online for finance.
ANZ (http://www.anz.co.nz)
Well known institutional bank ANZ supply a range of loans including for personal, business, home, and corporate. Also investment advice and management, insurance, income protection, foreign exchange, including bridging loans. This includes flexible repayment options, interest only payment during the loan period, until sale of existing home/property. Plenty of information on their web site, including guides, calculators, scenarios, online application, business specialist, relationship managers, economics and market research (e.g. forecasts, analysis, and commentaries), Asia and Pacific economic research, and much more. Also they can visit you when it suits, for expert advice.
Asset Finance (http://www.assetfinance.co.nz/)
Get a relatively quick approval if you meet basic security and credit criteria, e..g for property, home, vehicles, and other assets. Can also apply for a top up for your loan, and apply for personal, business, second mortgage (including bridging finance), debt consolidation, and invoice finance for improved cash flow. You can either repay interest or a structured plan including equal principal and interest for bridging. Loan from 2000 to 100, 000 dollars with repayment between 1 to 12 months. You can also invest in unsecured capital notes, and secured first ranking debenture stock. Perhaps visit their investment news, press release, rates, and document pages on their web site.
Cressida Capital (http://www.cressida.co.nz/)
Provides finance of up to 80% for a commercial property and perhaps higher, depending on collateral security you have. Can get a loan up to 6 million, if secured on a 1st mortgage, and up to 1 million if secured on a 2nd mortgage. Perhaps more, depending it seems, on a personal basis. Of course you can assess with their company. Also provide development funding, e.g. for retail, industrial, residential properties, and can view their interest rates, fees, and loan to value ratios, on their web site
Advantage Finance (http://www.advantagefinance.co.nz/)
Specialists in short term bridging, without penalty for early repayments, and offering fair and competitive interest rates. Provide a simple and quick online application process, documentation, and payouts. Business loans are secured over real estate, of which loan structures are based on interest only, progress payments, and capitalized interest for up to 12 months - ideal for bridging loans, which can be paid of at the end of the term. Advantage provide for construction, development, short term, for Businesses, and similar for personal loans which you might want to their home page.
Generally you would require assets or collateral, often a property, business equipment, possibly including your current property. However their are various flexible (and perhaps innovative) finance options and repayment plans to suit. Once the bridging loan is paid off, or if you need to restructure any existing finance, then you perhaps may seek (if not already) a permanent long term commercial finance plan, including business insurance from NZ Institutions and Providers. Bridging finance presents itself as a temporary, but quick funding vehicle, for enabling, transacting, and securing personal, business and related security or investment activities. Perhaps read overviews and case studies (pdf) at Jumbo Bridging (UK site).
A distinctive use for bridging finance comes when there is a gap of sale and purchase between two real estate properties.
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