Do you have poor credit history and still looking for a bridging loan? It’s a fundamental demand of a standard loan that you need to have a good credit history with any valuable asset to get access to it.
But the case is different with the non-status bridging loan, it is much easier to access as compared to standard finance. Non-Status bridging finance is our today’s topic of discussion. In this guide, we will explore all the perspectives on this loan and will let you know why this type of finance is preferable for you.
Let’s have a look!
What are Non-Status Bridging Loans?
Non-Status bridging finance is much better and quicker than standard bridging loans. Because Financial Conduct Authorities are not involved in this type of finance it makes it easier to access through a few simple steps.
But in reverse, if we talk about standard bridging finance then things will be quite different for you. You need to for different proceedings to get access to these loans. For non-status bridging loans, you don’t need to have a good credit history or any valuable asset but you need a powerful idea of business.
The potential of your development business is quite enough for you to get your lenders convinced. These are very flexible bridging loans that are according to the ease of borrowers.
Why do you need to use non-status bridging loans?
It’s the best option for all property developers and investors who are looking for urgent financial help to grow their projects. The only thing you need to get access to it is the potential development of the project.
If your business idea or already working business will be engaging and powerful payback planning then all the investors will surely be going to help you.
Following are a few reasons you might use to get a non-status bridging loan:
- Poor Credit History
- No Income
Poor Credit History
In standard bridging loans, impressive credit history is the fundamental need of the investors to know whether you can pay back or not. But in non-status bridging finance, you don’t need to have a good credit history record because it’s not countable in its terms. Your business situation and progress will be enough to get it done.
As long as you have any valuable asset or source to repay as long you can keep seeking loans. Your lender only needs a source or strategy to repay, you are attractive to lenders.
Benefits of Non-Status Bridging Loan
As all of us are much familiar that non-status bridging loan isn’t regulated which means the whole process from applying to getting money in your hands will be very shorter than the regulated bridging loans.
Aside from accessing non-status bridging finance, you shouldn’t worry about your stable source of income because it doesn’t matter whether your source of income is stable or not, your lender will surely be going to notice your asset or payback strategy. If both of these things will be fine then you don’t need to be worried about it.
Your soft assets like investments and pensions will also be countable to get this type of finance.
Note: All commercial loans are unregulated.
Risks of Non-Status Bridging Loan
Along with all of the above benefits, there are some risks too that will be in your way. Your low loan to value should be low your loan which will be much more beneficial and less risky for you.
There will be high risks for lenders which will surely be going to increase interest rates for borrowers. As we have told you that for non-status bridging loans they will never be going to ask for good credit history, but they will surely be going to look at your bankruptcies that your old bank records are fine or not.
You just need to show any valuable asset to your lender which will be enough for him, that’s why the fluctuation in your income doesn’t matter at all. All of you guys need to keep all the negative and the positive points in your mind which will make you able to decide whether you should go for it or not.
Lending Procedure for Non-Status Bridging Loan
The lending criteria depend upon your respective lender, he will make different strategies by himself accordingly. All of the lenders will require any asset or property as security.
Your soft assets will also be considered as a security to your lenders. You will directly contact your lender and discuss your business idea if it will be impressive to your lender then he will surely be going to say yes!
But if the chances of success will be less than expectations then your lenders will surely reject your application. They need a foolproof security plan which will be successful in the future because they can’t take any risks.
Note: Before approaching any lender make a powerful business strategy and or payback plan to impress your lender because it will be a plus point for you.
As being an active participant in this knowledgeable conversation you can know what is a non-status bridging loan. If we compare this type of loan with the rest of the standard bridging loans, non-status loans will be much more beneficial for you.
All the proceedings will be very quick and time-saving, your respective lender will not waste your time by asking about your income sources and assets.
You just need to tell him the cause behind borrowing, if your business plan or strategy will be strong enough to see the attention of your lender then things will be easy for you.
So if you are a property dealer or investor and need instant fi financial aid then just approach a non-status bridging loan without any extra thought. It will be easy to approach without showing too many valuable assets just like in standard bridging loans.