A bridging loan facility is a short-term loan to raise funds required to ‘bridge’ the time between either a refinance or sale of a property
They are typically more expensive than other forms of property finance, to reflect the increased risk taken by the lender and given the short-term nature of the facility. Bridging loans can be delivered quickly by the specialist lenders who have the processes in place to do so.
The benefits of bridging loans
- Provides funding to assist with short-term cash flow need
- Secured lending that can be a cheaper alternative to unsecured cash flow lending
- Can allow you to take advantage of acquisition opportunities prior to disposal of existing assets
- Can be utilised by companies and individuals for a wide variety of purposes where funding can be tailored to your individual requirements