A bridging loan is defined as a loan that is used to cover a temporary need for money. As such, it differs from classic installment loans that exist over longer periods of time or interim loans that generally have even shorter terms than a bridging loan.
Each of these forms of credit has its specific advantages and disadvantages. When which loan is the most suitable for you depends largely on the situation. Because for longer terms with payment of income, the interest on classic installment loans is cheaper and the repayment is staggered. But they are not always worthwhile,
When a bridging loan is worthwhile for you
Financial obligations that arise during operation are not easy to meet at all times. They can become a challenge, for example, if the existing capital is fixed, incoming payments are expected but do not arrive or high short-term payment obligations arise.
If you have to cover your short-term capital requirements, a bridging loan is suitable for you. Because compared to longer installment loans, short-term bridging loans can be applied for relatively quickly.
The clear advantage of bridging loans is the short term of a few weeks to a few months, which eliminate long-term commitments. The temporary money needed to bridge the short-term liquidity bottleneck is covered and ongoing operations can continue as usual.
The characteristics and advantages that characterize the bridging loan are briefly summarized as follows:
- Loan for bridging liquidity shortages in the short term
- Comparatively short term (a few weeks to a few months)
- Less formalities
Bridging loan through mortgage lending
Bridging loans must be applied for again each time. This process can be nerve-wracking, especially since you are already under pressure. In this respect, alternatives to traditional financial institutions can be helpful.
Here, for example, there is the possibility of mortgaging a pledge with the pledge loan. A mortgage loan has several advantages over classic loans. Some of the strengths of a mortgage are:
- Short-term loan possible
- Fast, uncomplicated and discreet
- No debt trap
- Only briefly charges the budget with the payments for the fees incurred
- No ZEK / Schufa information required and no entries
- Score at ZEK / Schufa remains unchanged
Various movable items can be lent in pawn shops. The higher the value of the deposit, the higher the approved amount.
Normally, the pawnshops specialize in special items to keep the risk for everyone involved as low as possible. For example, the car pawnshop. Here you can exchange your vehicle directly for cash and redeem it when you have the money available again in liquid form.
The following is a description of how you can do this in a pocket.
Your way to a car mortgage loan
Be creative when it comes to mortgaging a pledge. Many simply forget the possibility of being able to exchange their vehicles for money over a certain period of time, although a car deposit loan is a good alternative to a bridging loan.
In many cases, vehicles have the required high value and are also unnecessary for a limited period of time. Especially in winter, many vehicles are downright garage keepers, such as motorcycles, caravans and convertibles. You can now make these directly into cash.
1. Lend vehicle
To do this, you can contact the car pawnshop in advance and specify the vehicle type, the age and the mileage of the car. On the basis of the above-mentioned data, we create a possible non-binding loan amount.
As soon as you bring your vehicle to us, our experts will check its condition and calculate the final maximum loan amount. Depending on the vehicle, this is up to 60% of the vehicle value. After mutual signing of the pawn ticket, you will receive the money easily transferred or paid in cash directly on site.
2. Make important agreements
For a successful bridging loan by loaning the vehicle, the framework conditions and contract details must be negotiated. These are very important in order to make the auto deposit loan a success.
This includes, for example, security for both parties. To ensure this, the car pawnshop insures your vehicle over the loan period and places it in a garage to protect it against any damage.
Another security aspect is discretion. Since you leave us your vehicle as security, this form of bridging loan does not require ZEK or Schufa information. Neither your bank, your employer or anyone else learns about the loan from us.
The last security aspect concerns the identification of you and the vehicle in the form of a vehicle ID card, service booklet and all available keys, which are handed over to the car pawnshop over the credit period.
3. Deposit and end of contract
If all the votes have been taken and the pawn ticket has been signed, you will receive the loan. As soon as the money is available to you again, you can contact the car pawnshop again and redeem your deposit.
In this respect, the pledge is an attractive alternative to a classic bridging loan. Because it combines the advantages of the bridging loan such as flexibility with the advantages of the mortgage loan such as discretion and financial security. You are welcome to get further information from the car pawnshop and contact us today.