The benefit of a bridging loan is that it can usually be approved in a matter of days. Whether you’re buying a property at auction, bridging a financial gap or looking to fund a new project, a bridging loan can provide the quick capital that you need.
Here, we look at how you can speed up your bridging loan application and give you some tips to expedite the process. Let’s get into it…
What Can Help Me Speed Up The Process Of Securing A Bridging Loan?
While bridging loans are known for their speed, the actual time it takes to secure one can vary depending on a number of factors.
These include:
How Prepared You Are
One of the best ways to speed up the process is to come to the meeting prepared. Lenders require documents like proof of identity, business accounts, credit history and asset valuations.
If these documents aren’t ready or accurate, you could find that the process is delayed. Having everything ready at the start is important if you want to ensure a quick and easy process.
Valuation Of Security
If you are applying for a secured bridging loan, the lender will need to know the value of the asset you are putting up as collateral. This valuation process can take time, especially as it needs to be done by a professional.
Having this ready to go at the start is extremely important.
Credit History
While bridging loans are more focused on the value of the asset rather than the borrower’s credit history, a credit assessment will still likely be necessary.
A good credit score and a clear financial history can help speed up approval times. Lenders like Blue Square Capital understand that not everyone has a perfect credit score, and will work to assess applications on a case-by-case basis.
To find out more about if you can get a bridging loan with bad credit, see our guide here.
Legal Processes
One of the biggest delays in getting a bridging loan approved is the legal process.
This includes preparing documents by solicitors with the details of the loan. Working with a lender like Blue Square Capital means you have access to a network of experienced solicitors who understand the process, so choose your lender carefully.
Lender’s Policies
Different lenders have different processes, which can affect how quickly they can approve and release funds.
Some lenders, like Blue Square Capital, have procedures that allow for quick decision-making. We can often provide an initial decision within 24 hours or less, giving you confidence you need to move forward.
Market Conditions
In some cases, factors like changes in the property market can impact the speed of processing. Working with a lender that has a flexible and adaptive approach can ensure you aren’t up against delays like this.
How Long Does It Take To Get A Bridging Loan?
The timeline can range from as little as a few days to several weeks, depending on how prepared you are for the process.
Here’s a breakdown of the normal process for securing a bridging loan, which might give you a better idea of timelines:
Initial Decision
Once you make an enquiry with Blue Square Capital, our team will quickly look at your application.
In many cases, we can provide an initial decision within a few days. This involves understanding your borrowing needs, the value of the asset being used as security, and your exit strategy (how you plan to repay the loan).
The more clearly you can lay these out, the more quickly the loan is likely to move to the next stage.
Valuation and Documentation
If your application is approved in principle, the next step is to arrange for a valuation of the collateral asset and gather any other documents.
This can take anywhere from a few days to a couple of weeks, depending on how many of these documents you have available when the process starts.
Legal Review
Then, the legal process will begin. This will ensure both parties understand the terms of the loan, including interest, repayment and what happens in the case of a default.
Final Approval And Fund Release
Once all checks are completed and the legal work is done, the loan can be approved and the funds released.
In some cases, this could be within a week. For more complicated cases, it might take up to six weeks, but at Blue Square Capital, we work to keep this time to a minimum.
How To Speed Up Your Bridging Loan Application
Getting a fast bridging loan is all about how you navigate the application process. It is more likely to get approved quickly if you have the following:
Have All Documents Ready: Make sure all documents are collected and complete. Missing documents are one of the most common reasons for a delay.
Clear Exit Strategy: A clear and well thought through exit strategy gives the lender confidence that you are able to repay the loan, which can make the approval process quicker.
Good Communication: Stay in regular contact with your lender and respond quickly to any questions. This can help prevent any further delays.
Choose The Right Lender: Choose a lender that is known for speed and efficiency, like Blue Square Capital. We pride ourselves on being responsive, flexible and focused on delivering quick results for our clients.
Why Choose Blue Square Capital For Your Bridging Loan?
At Blue Square Capital, we understand that when it comes to bridging finance, speed is of the essence.
Our team is dedicated to working with you to provide terms that suit your project. Plus, we offer competitive rates, no early repayment penalty, LTV loans of up to 70% and transparent fees.
To apply for a bridging loan with Blue Square capital, get in touch today.
Get A Bridging Loan Today
Getting a bridging loan is a fast way to unlock capital when you need it most.
By choosing the right lender, being prepared and having a clear exit strategy, the funds can be available to you in as little as a few weeks.
For a quick, reliable and professional bridging loan experience contact Blue Square Capital today to discuss how we can help bridge the gap for you.
