What Is A Non-Status Bridging Loan?
Non- status bridging loans are bridging finance, that doesn’t take affordability into account and are instead, secured against the potential of the project.
It allows individuals and businesses to get a bridging loan, without the hassle of an analysis of cash flow.
It’s an excellent option for those who might not meet the standard requirements and risk criteria and instead follow a different set of requirements.
How Does A Non-Status Bridging Loan Work?
As this type of bridging loan is slightly different, they work in a different way than a standard bridging loan would.
The lender will have concerns in the potential of the deal which most of the time, will be a property development.
In this case, the lender can see the potential of the development project and a promise of receiving the money and so they may be open to offering a non-status bridging loan, despite having a lack of security or a poor credit history behind you.
If they see significant potential in the project that the money will be used for, then no matter what your financial situation or background is, they may offer a non-status bridging loan.
Like a standard bridging loan, an application process is needed. And during this, the lender will examine the value of the project the money is being used towards.
So, suppose the money is going towards a property development project. In that case, they will look at the Gross Development Value, rather than the income, cash-flow or credit history of the applicant.
As always, they can be agreed and have access to the loan very quickly and easily, once everything has been agreed on.
So, it only works slightly differently in that lenders will look more at the final value of the project, rather than you as an individual and your financial history.
How To Get A Non-Status Bridging Loan?
Just like you would a standard bridging loan, you need to find a lender, that is willing and will offer a non-status bridging loan.
Not all lenders will offer this finance, It will require you to look around to find one that does.
You will need to apply for the non-status bridging loan, where a lender will then carry out an application process with you.
During this process, they may focus more on your project that the money will be used on and what the expected total of the project will be, rather than focusing on security and assets.
Once you’ve discussed this and come to an agreement, the loan can then be ready within days.
Even though it is a non-status bridging loan, it is still quick and easy to get along with only being short-term.
To summarise, a non-status bridging loan is excellent for those that might not have the best credit history or assets in security, to get a bridging loan.
With a non-status bridging loan, they focus more on the potential of the project and what money could be made from it and offer a loan this way.
This is different to a standard bridging loan as it doesn’t follow the same rules and guidelines, but it can make it easier for those who might struggle, to get a loan, to help them with their project.