Source Of Short Term Finance: Bridging loans

September 10th, 2008 Comments off
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Append below features of Bridging Loan, the advantages and disadvantages of using Bridging Loan:

 

 

Features & Salient Points

  • Normally applies to property based or project financing
  • Loans are given for a specified period of time and coincides with the date the funds to repay. For example, in a housing project, a bridging loan of $XX million is repayable when the house owners commence to pay the housing developer.

Advantages

      Norm in the Real Estate Development to source this type of finance. Easy and convenience for developers to obtain.

Disadvantages

    Drawdown based on sales proceeds.

    A bit more paperwork when drawing down on the bridging loan.

Go to All Articles on Sources or Types Of Short Term Finances

 

 

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Financial Accounting

 
 

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