Investment Glossary- June 2018
Bridging Finance is a word that relates specifically to short-term funding. The term ‘bridge’ refers to the process of bridging the gap between oncoming debt and the main line of credit becoming available. In simple terms, bridging finance can be understood as an interim financing option employed to help individuals achieve their short-term financial goals.
As both building societies and banks have grown increasingly reluctant to lend since the financial crisis in 2008, bridging finance is becoming more and more common. When somebody comes to us for a bridging loan and they fulfil the necessary criteria, we then offer this to our investors as a peer to peer lending opportunity.
Building surveyors, much like all surveyors, inspect property and land. RICS (Royal Institute of Chartered Surveyors) is a professional body for charted surveyors. RICS set rigid standards and guidance in place for surveyors and provide training and progressive development opportunities for surveyors to comply with changing standards and legislation.
According to the official RICS website their chartered surveyors endeavour to “make an extraordinary contribution to the lives of everyone in the world: from building our cities, roads and railway systems to creating sports stadia and skyscrapers”. RICS surveyors are required to help develop and deliver the best value for owners, investors and end users. The standards to which RICS surveyors work are recognised across the world as a universally upheld benchmark.
A gross yield refers to an investment prior to the deduction of taxes and expenses. This can be anything from management fees to maintenance costs. Gross yield is calculated in percentage terms and is determined by the annual return on an investment (before any tax or other expenses are distributed).
Essentially, Gross yield refers to the total amount of money before anything is trimmed off from the total amount and then paid to the relevant persons/authorities.