Bridging Finance: The Complete Guide

Bridging finance is a solution to short-term funding requirements. Think of a bridging loan as a bridge for a temporary gap in short-term finances. You can use a bridging loan to pay for something new while you wait for another sale to complete.

Is it Right for You?

Bridging loans tend to work on a per calendar month basis with a flat rate per month. The longer the loan remains unsettled, the more expensive it is compared to longer-term funding.

Considerations

• Bridging lenders often provide several methods to pay monthly interest (retained vs serviced).
• Bridging finance can be used to purchase in different vehicles (personal, company).
• Lenders need a clear understanding of the exit strategy (sale, refinance, etc.).