All About Loan In Singapore
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Bridging Loans That Alleviate Your Cash Shortfall

There are many forms of loans available to serve specific purposes. A bridging loan is one of those that you can be thankful for. Although this term can be quite new to you, it can be a loan that serves your specific situation.

Bridging loans are used usually by those who are experiencing a delay in their cash inflow. Usually because an individual needs the cash that he will receive in the future for use now. These loans are short term loans. This is most commonly used for property transactions in Singapore where you need the sales proceeds for selling your house now so that you can buy a new one. There are also general loans like personal loans that allow you to use the funds for any purpose.

Saying that, bridging loans are also frequently used for personal uses, overseas holidays, or for business use. Cash shortfalls can cause a real problem for businesses. A business might not be able to collect their sales proceeds in time to pay their debtors. Thus the popularity of bridging loans. Companies might also term these types of loans as working capital loans.

Although bridging loans can sometimes be a life saver, the interest rates for them are usually much higher than average lending rates. So borrowers of bridging loans see it as a last resort most of the time. However the need for fast urgent cash still makes these forms of loan very attractive. The peace of mind for securing a loan for your urgent situation can be worth it.

Always make your own calculations of whether the interest that you will pay would be worth it. Sometimes, you might make a quick offer to buy something because of a big discount. However, the discount might be irrelevant when you take into account that you have to pay big interest on bridging loans to complete the transactions.