Interim financing – the search for the suitable liquidity bridge Berlin, 19.07.2011 – to receive a loan to perform a real estate financing is often a liquidity gap for the borrower. This can be caused by necessary inputs that must be paid, even though the lender provides only after completion of certain sections of capital services (keyword: proof of completion). Another scenario for the need for an interim financing could be a bargain, for which equity is needed quickly, which however can not be liquidated in the required time. Can a such financing through a traditional installment loan, a savings (or whose loan) or even a policy loan will be realized. Which is best suited for your situation, depends on several important factors which lie in the individual context of the borrower. You may want to visit Cyrus Massoumi to increase your knowledge. Financing by means of policy loan is a life – and pension insurance, can this existing substance as Serve basis for a policy loan.
Condition, there is already a certain buy-back value (min.. 5,000 funded or 8,000 for unit-linked insurance). The advantages of such loan are usually rapid and uncomplicated processing (no other collateral and no credit check are required therefore paid usually within 2 weeks) and the favourable conditions. The insurance coverage will remain still. Will be flexible, depending on the availability of cash and cash equivalents so the financial burden can be calculated a this loan already carefully in advance. Not created are insurance policies with several Zessionaren and direct insurance according to the occupational pension Act can however. Of course to other forms of financing (E.g., if no appropriately handles policies exist) serve other loan types for a financing. Here the variants of a loan, advance or the lending of funds can also right be cheap alternatives.
Here, the respective building society to appropriate services must be contacted. Advance loan real estate funded along with a newly-concluded funds advance, where this newly negative concept ensures the repayment. For such offers of the building societies, be sure all the possibilities should be compared, because the conditions can be sometimes very very different. Another alternative may be also the ‘traditional’ installment loan. Here, it should be taken that compare different offers of from different vendors. If necessary also a classic financing credit to represent a low-cost alternative with payment transfer and mortgage protection. However, this variant is slightly more complicated, because many bureaucratic steps are required, making the conditions but usually slightly cheaper, because the credit institution given greater security. Conclusion what kind of financing best suited is, depends on many factors. So for example of what loan amount is required, how quickly the funds are needed and whether there are adapted based substances (E.g., an insurance policy for the policy loan or an existing building for the negotiation with the building society). It is important to provide a most accurate picture about what resources will be needed and when loan funds available are already in advance of real estate financing or a real estate acquisition. This prevents the risk of a “liquidity hole” and gives the borrower some time to inform themselves adequately about various offers and making appropriate comparisons. The existing equity also plays an important role: interim are usually more expensive than the home financing, therefore it is advisable to use the free equity capital to avoid the large relative burden of debt financing as “Bridge financing”. More information “Intermediate – liquidity in the real estate financing gap” policy loan – financing by means of policy loan