It is well documented that traditional lines of credit have been restricted since the onset of the global economic downturn four years ago. What is not well documented, however, is that increasing numbers of people are using bridging loans to ease their financial constraints and that the number keeps on rising. Bridging loans have been steadily growing in popularity for a number of years now – even before the global economy deteriorated – and there are several reasons for this. Less stringent lending criteriaWhen you apply for a bridging loan, your credit rating will make no difference to your chances of success, as bridging loan providers do not check it. This means that any difficulties you may have had meeting credit agreements in the past will not come back to haunt you, which is why bridging loans are so popular among those with chequered histories. FlexibilityUnlike traditional banks, bridging loan companies do not impose any restrictions on what you can use the funds for, meaning you are free to spend the money as you wish. Short-term fundingAnother advantage of bridging loans is that they are short-term loans. In many cases, people only need to borrow money for a short period of time. An example of this is where you are buying a new house and have exchanged contracts on your existing home but the finer details have yet to be completed, meaning you are yet to receive the funds needed to buy your new place. In such circumstances, you only may only need money for a couple of weeks or months, meaning there is little point in borrowing over a five-year period. Borrow larger amountsDepending on which provider you choose, you may be able to borrow up to 1 million or more, making loans ideal for property developers, auction buyers and many other groups. Use various assets as securityIn previous years, bridging lenders would have required you to secure the funds against your property, however, a new breed of lenders has emerged in recent years and they are willing to accept various assets as security. That means your classic cars, yachts, fine art collections and other valuable possessions can be used to secure the funds you need. It is important to note that interest rates on loans are usually higher than those associated with traditional bank finance due to the short-term nature of the loans. Bridging loans have provided a lifeline for so many people and they can do the same for you, so why not explore your options?