Bridging Finance On Property Explained
Sometimes you need to hear something a thousand times to hear it for the first time. So you hear it, you hear it, you hear it, and all of a sudden you're like, "Oh, I get how it works!".
I've explained so many times what bridging finance is, and a lot of my friends have actually seen what I do. And when I'm with them, they say, "just explain to me again, what is it? What is bridging finance exactly?". I explain it to them and then they get it.
A few months go by, they don't get it again.
So just again in simple terms. If you earn a salary, you can go to your boss and say, "can you pay me that salary in advance?". That's called an "advance", you can get part of your salary early.
Now a commission earner earns a commission, not salary. And if you sold a property, you're an agent, you're going to get a commission, you won't get that commission for three months.
If you want to get it early, you get bridging finance, it's an advance on your commission. So you get your money ahead of time. And the same applies to the person that sold their property. They're going to have to wait three months to get the profits from their own home that they just sold.
If they don't want to wait three months, they can come to us, we will give them their money ahead of time. That's how they have cash flow. They don't have to deal with all the issues of waiting for their money.
That's what bridging finance is. I hope that gives you a further understanding of the whole subject. We're here to help, check out our website or get in touch!