If you have an existing bridging loan or development finance, but find yourself in a position where you’re not ready to exit the loan but the term is approaching the end, refinancing may be your best solution.
What Is Refinancing?
Bournemouth-based bridging loan broker Finbri explains that refinancing allows borrowers the funds and time to finish projects, complete the sale of assets or arrange funding via traditional finance routes. And it’s a type of funding that’s growing in popularity.
The Rise Of Refinancing
The coronavirus pandemic and Brexit are two of the main factors that have popularised refinancing nationwide. They have been responsible for increased project timelines countrywide and as a result, developers are using refinance strategies to navigate the impact.
Experts believe that inadequate labor and issues with material supply have also contributed to lengthened construction time frames nationwide. Numerous projects have exceeded their expected cost and time estimates as a result. These delays can be costly, so it is no surprise that many people who have to deal with them opt for refinancing loans.
No developer has been spared from the effects of Brexit and the pandemic, but it is clear that bigger ones are faring better. Big developers can leverage their solid supply chains, which their smaller counterparts typically lack. As a result, smaller companies encounter numerous problems and are at a disadvantage. Consequently, there is an even more immediate need for money for such companies. Fortunately, refinancing is a viable alternative these small developers can leverage to get the funds they require in less than a week.
These problems remain persistent even though the pandemic’s effects appear to be reducing. As such, experts predict that the demand for refinancing will continue to increase.
It is best to speak to your bridging loan provider if you need to refinance to complete your project. Refinancing is an attractive and practical option for these trying times, but it is still best to consider its advantages and disadvantages before deciding whether it is ideal for you. Therefore, consult a professional advisor to help you weigh the pros and cons before making your choice.