Frequently asked questions
Private Loans And Bridging Finance Explained
Often, private loans and bridging finance are used to fund property purchases, home improvements or development projects. Sometimes these loans are also used for investing or for time sensitive business opportunities.
With private finance and bridging loans, clients are able to borrow larger sums of money, typically £25k to +£1m.
Distinct Finance provides unsecured and secured loan options. Although usually our loans are secured and the borrower will be required to provide security through an asset, sometimes this is arranged by taking a charge on a property which they own.
The funding solutions we provide are bespoke, flexible and tailored to suit our clients requirements.
Credit decisions are quick and usually funds can be drawdown within a week or two.
Every deal is different, so it is recommended we have a brief discussion with you, so we are able to understand your requirements in more detail, and then we can provide you with some options to consider.
How Are Interest Rates Calculated
The interest rates provided on our private loans are dependent on a number of factors such as the loan amount, the duration of the loan, the interest repayment terms and the security being provided.
Rates are typically between 5% to +10%.
We recommend a brief discussion to enable us to understand your requirements, and then we can provide with some options to consider.
Exit Strategy and Repayment Explained
Private finance and bridging loans are designed to be short-term funding solutions, so an exit strategy is always required to repay the loan upon maturity.
In almost all circumstances, a viable exit strategy will involve either the sale of a property, refinancing through a longer-term arrangement like a bank mortgage or from a maturing investment or capital event.
Distinct Finance has valuable experience in this area and is able to discuss these options with you.