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In many cases it has been seen that the person is unable to buy a property or item because he fall short of a very little amount of money. For instance a person might decide to buy a house. He is also able to gather a large percentage of the money that he is going to spend in buying that particular house. But in many cases he might be unable to get a small portion of the money. At this time the people can take the help of the bridging loans. These are small amount of money that helps the person in compensating the amount of money that he is falling short of. A Bridging Loan is a concept that has been introduced in the market by the financial institutions that lend money. These loans are generally short time in nature. The people borrow such loans for some specific purpose. Some of the most common reasons why the people take bridging loans are for buying a property or paying a pending loan. There are many people who take the loan for settling a pending mortgage. The bridging loans are also known by various other names. Some of the most common terms that are used to describe this loan are interim loan and swing loan. The most important use of the loan is to bridge the gap that occurs at the time of gathering cash. It has been seen that most of the people lag some cash during the point he sells his existing property and buys a new one. Thus the owner of the property can achieve more flexibility with the bridge loan. Anyone can take a bridging loan. It can be a company or an individual. The loan schemes are devised in such a manner that they can be customized depending on the need of the person who is borrowing. In most of the cases such a type of loan is used for the purchase of real estate properties like land, house and apartments. The money can be also used to buy commercial properties. The companies or business houses can use the money to buy various kinds of machineries that can be used in the manufacturing processes. They can also use the money to buy raw materials and maintain the inventory. There are mainly two types of bridge loans available in the market. They are of open and closed types. The open loans are taken by those persons who are thinking of buying a new property without finalizing the sale of the property that he already has. In many cases it has been seen that the person is able to finalize the buying and selling process of the property. But they face some amount of delay in relocating from the old to the new house. These people have to opt for the closed version of the loan. But one thing that should be kept in the mind is that the lender takes the credit history of the person at the time of issuing the loan. Thus a good credit record will help in getting the loan easily.
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Bridging Loans, Bridging Finance,
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