Bridging loan and finance

Bridging loan and finance

Unlock seamless property project financing with CrowdProperty. Offering a range of solutions, including bridging finance, the platform promises fast, transparent, and simple funding options tailored to your needs. Get an indicative offer within 72 hours and work directly with property development experts.

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What is bridging loan and finance?

For small-scale and SME developers, bridging loans are short-term financing options designed to bridge the gap between purchasing a new project site and being construction-ready, or to quickly secure a property purchase. These loans are particularly useful for property developers or investors who need fast access to capital.

CrowdProperty's bridging finance product can help you unlock capital from an asset, secure a property purchase quickly, giving you time to get the development application (DA) in place , or even fund moderate levels of work. Structured in a single drawdown, it offers up to 75% LVR and is secured by first mortgage, providing both speed and security.

Types of properties for bridging loan and finance options

Bridging loans are often used by landlords, homeowners and property investors to buy a new property before selling their current property.

They are beneficial for property developers involved in buy-to-let projects, property flips, or even land development. For example, a property developer might use a bridging loan to purchase a residential property at auction quickly. The loan would provide the necessary funds to secure the property, allowing the developer time to either refinance to a more traditional loan or sell the property after renovation.

Why trust CrowdProperty for bridging loans and financing?

  • CrowdProperty offers a compelling value proposition for those seeking bridging loans and financing options. With the promise of an indicative offer within 72 hours, the platform addresses the need for speed, a critical factor in property development transactions. CrowdProperty's bridging finance is secured by first mortgage, offering up to 75% LVR, which provides both security and flexibility to borrowers. The platform also offers the advantage of working directly with property experts, ensuring that your project is evaluated and funded by those who understand the intricacies of property development.

  • This blend of speed, security, and expertise makes CrowdProperty an ideal choice for bridging finance for SME property developers.

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Features and benefits of bridging loan and finance

Flexibility to keep projects moving forward

  • This financing solution provides immediate access to funds, ensuring that your construction or renovation projects are not delayed due to financial constraints.

  • Capitalise on the opportunity to maintain momentum and achieve project milestones with ease and confidence

Expert support and advice

  • CrowdProperty offers dedicated expert support, providing guidance and advice throughout the financing process. This helps us ensure you are well-informed and supported at all times, making your projects more likely to succeed.

Fast and efficient processes

  • With indicative answers provided within 72 hours of application, CrowdProperty emphasises speed and efficiency. This quick turnaround is essential for developers needing timely funding to seize opportunities.

Tailored financing solutions

  • CrowdProperty prides itself on offering flexible financing options that are customised to meet the specific needs of each project. This adaptability allows for more targeted support and a better fit for various property development ventures.

Security and peace of mind

  • All loans are secured by a first mortgage, providing a layer of financial safety and peace of mind. This security measure underscores CrowdProperty's commitment to mitigate risks.
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How it works and things to know

CrowdProperty streamlines the financing process for builders and project developers, offering a straightforward, efficient approach to securing funds for property development projects. Here's a concise overview of the CrowdProperty financing process:

Stage 1: Application and evaluation

Developers begin by submitting their project details online, where CrowdProperty's experts rigorously assess each project's feasibility and development potential. This assessment focuses on ensuring projects meet stringent standards and involves a comprehensive 57-step due diligence process, catering to a wide variety of development needs including development finance, bridging loans, and more.

Stage 2: Funding and investment

Once a project is approved, it's listed on the CrowdProperty platform for funding, allowing investors to pledge their support for projects that align with their financial goals. This phase emphasizes the opportunity for investors to engage with specialized, high-potential property development projects, offering attractive returns and the chance for portfolio diversification.

Stage 3: Project execution and completion

With funding in place, projects commence under the watchful eye of CrowdProperty, which provides continuous monitoring and updates. The focus here is on successful project execution and adherence to timelines, culminating in the return of capital plus interest to investors upon project completion. This streamlined process ensures a seamless journey from project inception to completion, with CrowdProperty providing support and oversight throughout.

How to apply

The application process with CrowdProperty is hassle-free. Simply create an account, submit your project details for evaluation, and you could receive a formal offer within just 72 hours. It's a streamlined way to secure quick, reliable bridging finance for your property projects.

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Frequently asked questions

  • How long can you have a bridging loan?

    The duration of a bridging loan can vary depending on the lender and the specifics of your project, but they are generally short-term loans. Typical terms range from a few months up to 12 months. It's crucial to check the terms carefully and consult with your lender for exact timeframes.

  • How long does bridging finance take?

    The time it takes to secure bridging finance can vary depending on the lender and the complexity of the application. However, one of the key advantages of bridging finance is its speed. Some lenders, like CrowdProperty, aim to deliver an indicative offer within just 72 hours of application submission (assuming the borrower provides all the required information). Once approved, the funds can be made available quickly, often within a week or two. It's essential to consult with your chosen lender for specific timeframes.

  • Can I use a bridging loan for any type of property purchase?

    Generally, bridging loans are versatile and can be used for various types of property purchases, including residential, commercial, and mixed-use properties. CrowdProperty lends for residential development, so a bridging loan with us will relate to that in some way, such as purchasing a site for future development. Talk to our expert team about your specific requirements.

  • How does bridging finance differ from traditional bank loans?

    Bridging finance differs from traditional bank loans in several ways. It's specifically designed for short-term, property-related needs and usually lasts only a few months to a year. The approval process is typically faster, often within days, to meet typically more urgent requirements. Interest rates are generally higher due to the short-term nature and associated risks. Repayment is commonly in a lump sum at the end of the term, unlike the monthly repayments of more traditional loans.

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