The loan term bridge or bridge loan, refers, more that a financial product in the strict sense, to a temporary situation of funding, regardless that occasionally some financial entities expressly offered the possibility of arranging loans bridges. They are different the situations which may advise the formalization of a bridge loan, which can affect both individuals and corporations. Among the typical assumptions we are: the Constitution of guarantees, etc. the purchase of houses under construction, the acquisition of machinery, It is in all these cases, funding prior to the formalization of the loan that definitely will finance the operation. For example, we can consider two common assumptions, one that affects individuals and other companies: usual that individuals buy houses under construction, in a way that during the time of building and up to the delivery of keys, having to pay a series of amounts, unless they have mortgage financing. So through a bridge loan, these quantities could be financed, and subsequently, to delivery of housing and formalization of timely mortgage, they can return to be included in the total amount of the operation.
It happens this way that the bridge loan is absorbed by the final loan, associated with mortgage guarantee to the acquired House, and has been achieved a total funding of total capital to pay. In the case of corporations, it is possible to purchase real estate, in which case the processing would be similar to the exposed, also increasingly is more frequent than the acquisition of machinery or installations, suppose a request to measure, a prior custom made to the manufacturer, which often must be a considerable cash delivery, without that at the moment it is possible to finance it through mortgagegiven that charge machinery there is no. In these cases a bridge loan, would serve to cover those first deliveries of financing, with independence that later, after the timely mortgage processing, achieves the total financing of the operation. It is very rare that the bridge loan is mortgage type, in the absence of good that guarantees it, more usual is concerned of loans for consumption, of short duration and that they shall be cancelled at the time of formalization of the mortgage loan. The acquisition of houses under construction, both as the purchase of machinery by custom, involving delivery of monetary amounts in advance, resort or not to the bridge loan, it is important that the buyer requires two complementary measures: to) that the quantities delivered to account are endorsed by any financial institution, so that the possibility of fulfillment of the contract by the constructor or manufacturerpossible and easy to recover the investment. (b) If you are also using a loan bridge, which is designed and formalized for a specific time, the buyer should require a series of penalties, that you involve the payment of compensation by the constructor or manufacturer, to possible delays in the delivery of the goods, by the constructor or manufacturer. In this way any further costs that may involve the formalization of the bridge loan would be covered.