Short Term Bridge Financing

 

Provides quick funds for a short period of time.  At times, borrowers may not be able to rely on the bank to fund quickly enough, or there may be a barrier to obtaining bank financing.  We can provide mortgage funding quickly…in as little as 48 hours when the required documents are available upfront.  Let us help you solve your timing issue!

 

Example #1

 

The Dilemma

  • Mr. Red owned a trucking company
  • He obtained a new contract from a well-known oil company which required him to purchase some additional trucks and hire some additional workers
  • The new contract provided substantial profit to Mr. Red upon completion of the work, but he did not have the funds upfront for the new trucks or workers
  • Even though he had equity in his home that he could use to obtain financing, his bank would not lend him the money because he was self-employed and his company had not been in business long enough

Westpoint’s Solution

  • Westpoint provided the mortgage against his property we was seeking to provide the funds needed for the trucks and workers
  • Mr. Red completed his work for the oil company and was paid for the work
  • Mr. Red used a portion of the profit he earned to repay the Westpoint Capital mortgage in full

Overview

  • Mr. Red was able to earn a substantial profit from the contract with the Oil company but would not have been able to take the contract if not for the financing provided by Westpoint Capital to purchase the trucks and hire additional workers
  • Westpoint Capital can provide financing while a customer is waiting to be paid on a receivable or work contract as long as there is equity in a property to lend against

 

Example #2

 

The Dilemma

  • Mrs. Green had a reassessment on her income tax last year, resulting in a debt owing to Canada Revenue Agency (CRA)
  • She did not pay the debt quickly enough and as a result CRA placed a lien against her property
  • Mrs. Green needed to be able to repay the debt slowly over time, at a low interest rate, and so she applied with her bank for a home equity loan to repay CRA
  • The bank approved the loan however, one of the conditions of the financing was that she did not have anything owing to CRA (a common condition of bank financing)
  • Mrs. Green was stuck because she needed the money to repay the CRA debt, but couldn’t obtain the refinance until the debt has been repaid.

Westpoint’s Solution

  • Westpoint approved her for the financing and repaid CRA directly
  • Ms. Green was then able to show her bank that she did not owe anything to CRA
  • The bank completed the refinance and the Westpoint Capital mortgage was repaid from the proceeds

Overview

  • Ms. Green was not able to obtain funds from her bank that she required in order to repay CRA, due to the CRA debt
  • Westpoint provides bridge funds required to break log jams…in this case to repay CRA debt so that the bank will then complete refinancing which can be repaid over time
 

Benefits

  • Repay a CRA debt prior to bank financing
  • Fund a quick close or flip on a property
  • Use home equity while waiting for a receivable to come in