What is bridging finance?

BRIDGING LOAN, what is it? How does it work? A bridging loan is a short-term financing option, as the name suggest, it finance to bridge a gap, be it PO Funding, Cession Funding, Property bridging finance and so forth

The following are features of bridging finance

• Short-term loan – Typically ranging from 1 to 12 months
• Secured financing – Different Products have different security model, ranging from property security, third party security & so forth.
• Higher interest rates – Due to the short-term nature and risk factor, interest rates are often higher than traditional loans.
• Fast access to funds – Approval and disbursement happen quickly compared to traditional bank loans

Who is the target market?

Typically, our bridging finance products are meant to close gaps. Here are some of the most common use cases:
 

Cession Funding

There are two types of cession, an out-and-out cession is a bilateral agreement where all rights are entirely ceded to the cessionary. This means the rights no longer belong to the cedent but instead belong to the cessionary. It’s a reversionary interest, which means the cessionary must re-cede the rights to the cedent when the secured debt has been paid off. However, this is not automatic and requires a re-cession agreement unless otherwise stated. Failing to re-cede the debt can have severe consequences for both parties.

On the other hand, a security cession, also known as a pledge and cession in securitatem debiti, is when the cedent pledges or encumbers their rights against their debtor and transfers these rights to the cessionary to secure an obligation owed to them. For example, a security cession is typically used to create a security interest in the cedent’s rights to book debts, bank account funds, insurance policies, or shares. It has been legally recognized that a cession in securitatem debiti is similar to a pledge of corporeal movable property.

Property Sellers & Agents

Selling property is not just a lengthy process but can also be financially straining, there are associated cost such as cost of renovations, transfer related compliance certificate, cost of moving & so many associated costs that comes with selling a property, while you awaiting that conclusion & registration to finish, we have a product that can assist with those financial gaps that can hinder the transferring process. 
 Estate agent, we also know you worked too hard for your commission, don’t wait further for it, we can advance you the money at a fee, please liaison with us anytime 

PO Funding  

It’s the nature of the game, it happens to most, business cash flow problems are common, Our purchase order funding model will provide the much needed fund to deliver the purchase order, our PO funding are tailored with business owners in mind. This bridging finance solution will assist to maintain operations and cap disruptions

IN CONCLUSION

Our bridging finance solutions are meant to close the gap during a need of financial solution while you are awaiting payout, we will wait with you

Feel free to engage our experienced financier for more details on any of our products