The property market is not showing signs of slowing down. Exciting new developments, the steadily increasing demand for both residential and commercial properties, and market conditions, in general, are great ingredients for sustainable success in the property market. Of course, a vibrant market still has its challenges.

One of the main obstacles that property developers need to overcome is financing. With so many opportunities, it is often necessary to acquire short-term financing for new projects and purchases. Fortunately, there are several short-term funding options that property developers can count on.

Title Loans

One of the financing options to look at when you’re trying to finance a property development is a title loan. A title loan places an existing asset of yours as collateral and provides the financing you need for 30 days or less. You have to repay the loan within the predetermined period or the lender will take the collateral in exchange for the repayment.

Title loans started life as a consumer loan, where people could use their cars as collateral. Today, however, banks and financial institutions are offering title loans against bigger assets, including existing properties or land. This makes the loan a great option for short-term financing.

As with any other secured loan, you pay a relatively low-interest rate. However, you risk losing the collateral at 70% to 80% of its value if you cannot repay the loan on time.

Bridging Finance

Bridging finance is a loan that any property developer can benefit from. As the name suggests, bridging finance – or a bridging loan – is designed to bridge the gap in your cash flow. It is a loan that can be used to complete quick purchases using the purchased property or another existing asset as leverage.

A fast loan approval process is a big advantage – bridging finance loans of £50,000 or more can approved in as little as 24 hours. You can use a bridge loan to enter auctions. You can even get the loan pre-approved, which means you can pick up cheap properties at an auction and settle the purchase in minutes.

A fast loan approval process is a big advantage. You can use a bridge loan to enter auctions. You can even get the loan pre-approved, which means you can pick up cheap properties at an auction and settle the purchase in minutes.

Line of Credit

The last financing option to consider is the traditional line of credit. Many banks offer lines of credit to property developers with good financial standings. This type of loan is more suited for smaller needs – a typical line of credit limit is usually around £100,000 – but it is a handy financing option to have nonetheless.

With a line of credit, there is no need to apply for a loan when you need additional financing. The money is ready for you at any time; all you have to do is file a request and you will have the ability to transfer or withdraw the money almost immediately.

These short-term funding options are great, especially in a property market as lively as today. They are the perfect leverage to your future success in the property sector.