Common Questions about Bridging Finance

Bridging finance has become an essential component of the financial landscape, offering rapid solutions to the cash flow needs of individuals and businesses. TWH Finance stands out as a prominent player in the industry, providing alternative and effective financial options. This guide addresses common questions about bridging finance, providing insight into the process and emphasizing the commitment of TWH Finance to offer swift and tailored solutions.

1. What is Bridging Finance? Bridging finance, often referred to as asset-based finance or loans against collateral, is a dynamic and short-term financial solution designed to bridge gaps in cash flow, especially in property-related transactions. It allows individuals and businesses to access funds promptly, offering flexibility during critical periods.

2. How Does Bridging Finance Work? Bridging finance operates by using secured transactions as collateral against the required funds. This ensures a quick and efficient process, enabling borrowers to access funds in advance of the finalisation of a sale.

3. How to Apply for Bridging Finance in 4 Steps: Step 1: Complete the online contact form. Step 2: Send required information. Step 3: Receive confirmation. Step 4: Receive funds in a few hours after confirmation.

4. How Much Can I Bridge? Typically, bridging finance providers can bridge up to 80% of the proceeds from a sale, depending on the transaction's progress. This flexibility allows borrowers to tailor their financial solutions to their specific needs.

5. How Long Does it Take to Receive Funds? Once all suspensive conditions are met, funds can be disbursed in as little as one hour. This quick turnaround time sets bridging finance apart as a rapid and efficient financial solution.

6. Approval Process: The approval process for bridging finance typically takes 2 – 48 hours, ensuring a swift response to financial needs.

7. Repayment Terms: Repayment terms vary for each type of transaction, with a maximum term of 12 months. This flexibility allows borrowers to manage their repayments according to the specific nature of their financial arrangement.

8. Is Bridging Finance Only for Property Transactions? Bridging finance is commonly associated with property deals, but it can also be used in various scenarios, including unlocking funds from a new bond, accessing commission early for estate agents, or addressing cash flow gaps in other property-related transactions.

9. Are There Any Restrictions on How I Use the Bridged Funds? Bridged funds can typically be used for various purposes, providing flexibility to borrowers. Whether settling other important expenses, investing, or addressing immediate financial needs, bridging finance offers versatility in fund utilisation.

Bridging finance is a versatile and effective financial solution, and TWH Finance is committed to providing clients with the support they need during tough times and cash flow gaps. Whether you're a homeowner, estate agent, or commercial broker, bridging finance offers a tailored solution to bridge financial gaps and access funds promptly.

For more information on how we can assist, TWH Consulting invites you to apply by clicking here.

We service the whole of South Africa from our head office in Cape Town and branches across South Africa.

Common Questions about Bridging Finance

Common Questions about Bridging Finance

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