Benefits of obtaining Bridge Loan Financing with Private Lenders

As it is clear from the name that bridge loan is a temporary kind of financing which is taken to create a bridge between the short-term cash requirements and long-term investments. But the main drawback is that these are provided at an excessive rate of interest and backed by collateral security by Banks as the primary motive of a traditional bank is to earn profit from the development projects. But on the other side, private money mortgage lenders are more receptive, they charge less rate of interest as their primary motive is to help the borrower in meeting his financial needs.

In short, if you want to slighter that drawback of bridge loan financing, you can switch to private money lenders rather than the banks which are charging a higher rate of interest plus collaterals. Private money lenders are those non-banking firms that offer loans with different rules and regulations, unlike the banking protocols.

Now a question arises that how to choose a perfect money lender for financing your bridge loan:-

The best way of finding a lender is from the internet. A quick internet search will provide dozens of lenders offering the different rate of interests, fees and other terms and conditions. It depends on you that how will you get the best lenders by comparing each of them from the services provided by them.

Benefits of obtaining the loan from a private financer are: -

•          No credit history check: - When you apply for a loan at any bank, the very first thing they will check is what your credit history is. However not every applicant has credit score which will match to the bank’s requirement. So in this case, the applicant will be rejected by banks. But in case of private money lenders, they will not check your credit history.

•          Quick money disbursal: Banks will give you the surety that they will provide you loan just after completing the legal requirements, but the reality is different. Banks spend more time on their rules rather than their servicing. On the other hand, Private money lenders will disburse the funds in a short span of time.

•          Less documentation: - Banks ask for various documents and forms to be submitted by the applicant before the disbursal, and each form has different charges. But this is not happens in the case of private money lenders.

So you should try for a private money lender instead of traditional banks. But before applying for bridge loan financing make sure that the lender whom you are dealing with has the required license.