{"id":5501,"date":"2020-05-15T13:33:14","date_gmt":"2020-05-15T13:33:14","guid":{"rendered":"https:\/\/swoopfunding.com\/ca\/?post_type=knowledge-hub&#038;p=5501"},"modified":"2023-05-23T08:40:05","modified_gmt":"2023-05-23T08:40:05","slug":"re-bridging-loan","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/ca\/knowledge-hub\/re-bridging-loan\/","title":{"rendered":"Re-bridging loan"},"content":{"rendered":"\n <div class=\"faq-accordion faq-accordion301\">\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading0301\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse0301\" aria-expanded=\"true\" aria-controls=\"collapse0\">\n What is a re-bridging loan? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse0301\" class=\"collapse show\" aria-labelledby=\"heading0\" data-parent=\".faq-accordion301\">\n <div class=\"card-body\">\n <p>If your business is approaching the end of the term on a bridging loan, you\u2019ll need to re-bridge, i.e. arrange a new bridging facility to replace your existing loan. You can either arrange a bridge extension (loan) or you might prefer to move your loan elsewhere.<br data-rich-text-line-break=\"true\" \/>\u00a0<br data-rich-text-line-break=\"true\" \/>The amount is $25,000 to $100m (maximum 80% loan-to-value ratio). Usually up to 12 months but can be up to 3 years.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading1301\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse1301\" aria-expanded=\"true\" aria-controls=\"collapse1\">\n Why choose a re-bridging loan? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse1301\" class=\"collapse \" aria-labelledby=\"heading1\" data-parent=\".faq-accordion301\">\n <div class=\"card-body\">\n <p>If you\u2019re looking to refinance an existing bridging loan at a better interest rate, or if your existing bridging loan is coming to the end of its term and you no longer have an exit in place (i.e. something\u2019s not gone to plan), you have two options.<\/p>\n<ul>\n<li><strong>Remain with your existing lender<\/strong><br data-rich-text-line-break=\"true\" \/>Bear in mind that arranging a loan extension with your exiting lender might work out more expensive, especially if you have to pay an extension or rearrangement fee.\u00a0 Also the term might be much shorter than the original loan, so you might be in the same situation again before long.<\/li>\n<li><strong>Find an alternative lender<\/strong><br data-rich-text-line-break=\"true\" \/>Moving your loan elsewhere might (or might not) be a cheaper and better option in the longer term.<\/li>\n<\/ul>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading2301\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse2301\" aria-expanded=\"true\" aria-controls=\"collapse2\">\n Pros and cons of a re-bridging loan <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse2301\" class=\"collapse \" aria-labelledby=\"heading2\" data-parent=\".faq-accordion301\">\n <div class=\"card-body\">\n <ul>\n<li><strong>Quick way to obtain further financing<\/strong> &#8211; with turnaround times of 48 hours, it\u2019s fast.<\/li>\n<li><strong>You can manage long payment cycles<\/strong> &#8211; as many start -up companies suffer from cash flow problems, alleviate this common cost of doing business. This allows you to cover up front costs to realise business goals.<\/li>\n<li><strong>Retain control of your business<\/strong> &#8211; give up no equity of your business, placing you fully in control of your business<\/li>\n<\/ul>\n<p>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Higher interest rates<\/strong> &#8211; as a bridging and re-bridging loan is considered short term lending, the rate charged may be higher<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Higher payments<\/strong> &#8211; also as the payment terms are shorter, repayments will be correspondingly larger over a period of shorter time.<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Higher risk<\/strong> &#8211; You\u2019ve taken out a bridge loan in anticipation of future income. If this fails to materialise, you will be burdened with large repayments which could severely impact your business moving forward.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading3301\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse3301\" aria-expanded=\"true\" aria-controls=\"collapse3\">\n Is it suitable for an SME? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse3301\" class=\"collapse \" aria-labelledby=\"heading3\" data-parent=\".faq-accordion301\">\n <div class=\"card-body\">\n <p>Although understanding bridging financing is fairly straight forward, getting the most value of out of your commercial bridging and re-bridging is not necessarily easy! The timing, length and term value of a bridging loan is crucial to ensuring it is an optimal choice for your business. Before proceeding ahead please consider carefully the cost and benefit of a bridging and re-bridging loan. We also provide a variety of short, medium to long term lending options such as\u00a0<a href=\"https:\/\/swoopfunding.com\/ca\/knowledge-hub\/invoice-finance\/\">invoice finance<\/a>, <a href=\"https:\/\/swoopfunding.com\/ca\/knowledge-hub\/working-capital-finance\/\">working capital finance<\/a>\u00a0or\u00a0<a href=\"https:\/\/swoopfunding.com\/ca\/knowledge-hub\/revolving-credit-line-facility\/\">revolving credit\u00a0facilities<\/a>.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading4301\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse4301\" aria-expanded=\"true\" aria-controls=\"collapse4\">\n Have you also considered? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse4301\" class=\"collapse \" aria-labelledby=\"heading4\" data-parent=\".faq-accordion301\">\n <div class=\"card-body\">\n <p>If you have taken out a bridging loan and you are unsure if you want to re-bridge, consider:<\/p>\n<ul>\n<li>short-term business loans \u2013 usually between 3 and 18 months (often referred to as <a href=\"https:\/\/swoopfunding.com\/ca\/business-loans\/working-capital-loans\/\">working capital loans<\/a>)<\/li>\n<li>\u2018term\u2019 loans \u2013 usually between two and five years (\u2018term\u2019 means medium- or long-term)<\/li>\n<li>very short-term loans \u2013 including <a href=\"https:\/\/swoopfunding.com\/ca\/knowledge-hub\/revolving-credit-line-facility\/\">revolving credit<em>\u00a0<\/em>facilities<\/a> and other business overdraft alternatives<\/li>\n<li>long-term loans \u2013 these can run from 3 to 30 years, require monthly or quarterly payments from cash flow or profit, might restrict other financial commitments (e.g. debts, dividends or principals\u2019 salaries), and can require an amount of profit set aside for loan repayment<\/li>\n<li>balloon loans \u2013 relatively small monthly payments, ending with final \u2018balloon\u2019 payment to pay off the remaining loan balance<\/li>\n<\/ul>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n <script type=\"application\/ld+json\">\n    {\n        \"@context\": \"https:\/\/schema.org\",\n        \"@type\": \"FAQPage\",\n        \"mainEntity\": [\n                                {\n                \"@type\": \"Question\",\n                \"name\": \"What is a re-bridging loan? \",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"If your business is approaching the end of the term on a bridging loan, you\u2019ll need to re-bridge, i.e. arrange a new bridging facility to replace your existing loan. You can either arrange a bridge extension (loan) or you might prefer to move your loan elsewhere.\u00a0The amount is $25,000 to $100m (maximum 80% loan-to-value ratio). Usually up to 12 months but can be up to 3 years.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Why choose a re-bridging loan?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"If you\u2019re looking to refinance an existing bridging loan at a better interest rate, or if your existing bridging loan is coming to the end of its term and you no longer have an exit in place (i.e. something\u2019s not gone to plan), you have two options.  Remain with your existing lenderBear in mind that arranging a loan extension with your exiting lender might work out more expensive, especially if you have to pay an extension or rearrangement fee.\u00a0 Also the term might be much shorter than the original loan, so you might be in the same situation again before long. Find an alternative lenderMoving your loan elsewhere might (or might not) be a cheaper and better option in the longer term. \"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Pros and cons of a re-bridging loan\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \" Quick way to obtain further financing &#8211; with turnaround times of 48 hours, it\u2019s fast. You can manage long payment cycles &#8211; as many start -up companies suffer from cash flow problems, alleviate this common cost of doing business. This allows you to cover up front costs to realise business goals. Retain control of your business &#8211; give up no equity of your business, placing you fully in control of your business  !\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Higher interest rates &#8211; as a bridging and re-bridging loan is considered short term lending, the rate charged may be higher!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Higher payments &#8211; also as the payment terms are shorter, repayments will be correspondingly larger over a period of shorter time.!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Higher risk &#8211; You\u2019ve taken out a bridge loan in anticipation of future income. If this fails to materialise, you will be burdened with large repayments which could severely impact your business moving forward.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Is it suitable for an SME?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"Although understanding bridging financing is fairly straight forward, getting the most value of out of your commercial bridging and re-bridging is not necessarily easy! The timing, length and term value of a bridging loan is crucial to ensuring it is an optimal choice for your business. Before proceeding ahead please consider carefully the cost and benefit of a bridging and re-bridging loan. We also provide a variety of short, medium to long term lending options such as\u00a0invoice finance, working capital finance\u00a0or\u00a0revolving credit\u00a0facilities.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Have you also considered?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"If you have taken out a bridging loan and you are unsure if you want to re-bridge, consider:  short-term business loans \u2013 usually between 3 and 18 months (often referred to as working capital loans) \u2018term\u2019 loans \u2013 usually between two and five years (\u2018term\u2019 means medium- or long-term) very short-term loans \u2013 including revolving credit\u00a0facilities and other business overdraft alternatives long-term loans \u2013 these can run from 3 to 30 years, require monthly or quarterly payments from cash flow or profit, might restrict other financial commitments (e.g. debts, dividends or principals\u2019 salaries), and can require an amount of profit set aside for loan repayment balloon loans \u2013 relatively small monthly payments, ending with final \u2018balloon\u2019 payment to pay off the remaining loan balance \"\n                }\n            }          ]\n    }\n    <\/script>\n \n","protected":false},"excerpt":{"rendered":"","protected":false},"author":21,"menu_order":49,"template":"","segment":[295],"class_list":["post-5501","knowledge-hub","type-knowledge-hub","status-publish","hentry","segment-business-loans"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>What is a re-bridging loan? If your business is approaching the end of the term on a bridging loan, you\u2019ll need to re-bridge, i.e. arrange a new bridging facility to replace your existing loan. You can either arrange a bridge extension (loan) or you might prefer to move your loan elsewhere.\u00a0The amount is $25,000 to $100m (maximum 80% loan-to-value ratio). Usually up to 12 months but can be up to 3 years. Why choose a re-bridging loan? If you\u2019re looking to refinance an existing bridging loan at a better interest rate, or if your existing bridging loan is coming to&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Jimmy Rippon","url":"https:\/\/swoopfunding.com\/ca\/author\/jimmyrippon\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/knowledge-hub\/5501","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":0,"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/knowledge-hub\/5501\/revisions"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/media?parent=5501"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/ca\/wp-json\/wp\/v2\/segment?post=5501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}