Bridging finance can be a great way to provide emergency funds or for time-sensitive deals. Ideally, a bridging finance broker should build good long-term relationships with both borrowers and lenders.
Unlike long-term loans, many bridging loans do not have a monthly payment. There are upfront costs and the loan is repaid in full before the end of the loan period. Once a loan has been arranged a broker may not have to contact the lender or borrower again. However, a good broker will monitor the progress of the loan and be there to spot problems both in the loan application procedure and at the time of the loan repayment.
Many bridging loans are required for time-sensitive deals. A good broker keeps up-to-date on the loan application process. If there are delays in the legal work or valuation report, the broker can address this and help speed up the process.
A broker should also remind borrowers about their repayment obligations when it is near to the loan completion date. Occasionally loans are not repaid by end of the loan period. A broker who has a relationship with both the borrower and the lender can mediate to find an acceptable solution for the repayment of the loan.
Of course, if a borrower feels the broker has been helpful they will use them again if they need further bridging finance. The more experience a broker has of a lender, the more they are likely to recommend the lender provided they still have good bridging finance deals.
