Bridge Loans with Rent Cash In

28 September, 2015

We begin by wishing each and every one of you a happy Mid-Autumn Festival! Here’s hoping you took advantage of the long weekend to catch up with friends and family, or simply rest up! Monexo continues its initiative of educating the individuals on the scope and uses of peer to peer financing across the spectrum. In this post, we take a look at short term financing, specifically, bridge loans.

Welcome back for another round of #MonexoMonday. We hope you had an opportunity to go through our previous post on how the rent cash in model assists you in purchasing property abroad. If not, do check it out here.

On this occasion, we discuss another advantage and scenario for borrowers to use Monexo’s rent cash-in product, bridging loans.

As its name suggests, a bridge loan is essentially a gap bridged of an individuals’ or business’ financing. It is interim financing (usually less than six months) for individuals or businesses until permanent, or the next stage of financing is obtained.  Once the subsequent source of financing has been received, it is usually used to pay back the bridged loan.
Applications of bridge loans include property purchases (to quickly close on properties), during the transference of ownership of a company as temporary cash flow, injecting liquidity into production processes, carrying distressed companies, quick mergers, pre-IPO funding, etc. to name a few.

To fully describe what a bridge loan is, and to elucidate its key characteristics, let me use an example: assume you wish to sell a property you currently have rented out, but at the same time wish to purchase another property. To purchase the new property, you require quick financing for the down payment – which is when you would obtain a bridge loan.

Monexo would perfectly assist you in bridging your gap in financing, with its unique selling propositions.

The rent cash-in model at Monexo offers you the opportunity to borrow against your rental income for a period between 6 to 48 months, have your loan listed on our marketplace within 24 hours of a fully documented application, and funded on the marketplace swiftly.

There really is no hook to this bait. 

What’s best about using Monexo’s services for a bridge loan, is that if you do come into your permanent/next source of financing quicker than anticipated, you can easily pay off your loan earlier, without incurring any repayment penalties (see here).

Aside from a swift service, and no early settlement fees, why should you opt for Monexo to provide you with a bridging solution? Bridging loans obtained at traditional lending institutions come with higher interest rates (due to the urgent nature of the requirement), and other costs, which are amortized over a shorter period, as well as higher service fees.

At Monexo, however, there are no additional fees added to the regular borrower service fees, and because, Monexo, as we blogged about previously, offers a declining balance form of interest payment, meaning that our solutions are more cost effective for you, as a borrower. Couple that with the swiftness, and easiness at which you can obtain financing Monexo, and it’s clear daylight!

Essentially, Monexo’s rent cash-in product can assist you in bridging your financing requirements. Swifter, cheaper, and easier – Monexo.

Do tune in next week for another edition of #MonexoMonday! Like, share, and tweet us your ideas, questions or comments @WorldofMonexo. #MonexoMonday

Author: Sahil Mohnani @Monexo