Short Term Bridging Loans

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Short Term Bridging Loans from Aquamore

A short term bridging loan is a popular finance option for property developers and investors as it offers a stronger, more flexible position when it comes to land and property acquisition. Bridging finance can provide a solution to a number of circumstances. It may be used to complete an unfinished development project in order to release capital that had previously been restricted. Bridging loans can also give investors the opportunity to purchase land or property at auction. Another reason bridging loans can be useful is that they often provide capital that wouldn’t be available through a mainstream lender due to the condition of the property or site in question.

 

Loan Terms and Repayments

Terms and repayments of a short term bridging loan will depend on the individual circumstances of the organisation applying for the loan. The amount available to borrow ranges from $200k to $7.5million. First mortgage rates start from 8.99% per annum while second mortgage rates are offered from 1.2% per month with our secured loans incurring an establishment fee of 2.2%. Our case study below highlights one example of a bridging loan structure including the recourse agreement and loan term. You can contact us to discuss your specific project for a more detailed overview of representative rates and terms.

 

A Short Term Bridging Loan Case Study

Although every project and funding arrangement is unique, this case study offers a demonstration of how a short term bridging loan could be put in place for your next venture. Here is a top-line summary of how an Aquamore client utilised bridging finance to embark on a real estate development project:

Facility Size:
  $3,490,500

Facility Requirement: Acquisition of land for several affordable housing developments

Use & Structure: The Facility assisted a developer with the financing of five building sites located in QLD and Schofields, NSW. Based in NSW, the Australian-owned building company specialises in developing affordable housing.

Loan Term:
 12 months

Key Ratios: 
Maximum Loan-to-Value Ratio (LVR) < 60%. Loan interest paid monthly.

Arranged Recourse:

  • First registered mortgage security over all five properties
  • First Ranking General Security Agreement over all the assets and undertakings of the Borrower
  • Share Mortgage over the Borrower
  • Directors’ and/or Personal Guarantees of the Borrower

 

Why Choose Aquamore for Your Short Term Bridging Finance Solution

Based at our Sydney Head Office, the Aquamore team has a wealth of experience where commercial ventures are concerned, along with a range of specialist expertise in areas such as property and taxation law. Unlike larger financial lenders, we’re primed to assess information and execute decisions quickly and efficiently, meaning your project can progress without any unnecessary delay from Aquamore as a funding facilitator. We can release funds within 48 hours of finance acceptance.

Since beginning operations in 2016, we have released over $100million in funding to clients looking to grow their business ventures. We hold current AFS and AC licenses in addition to an in-depth knowledge of business growth strategy across a range of sectors.

You can contact us by calling, emailing or filling out our application form to arrange a discussion and learn how we can help with the financial facilitation of your next business venture.