Bridging finance is short term finance which is designed to get you out of a ‘squeeze’ or assist in providing a short term financial solution. It can be for anywhere between 1 to 12 months and provide you with the necessary time to implement an exit strategy, what-ever that may be.

It can be used in many situations, the most common one include finance to purchase a new property whilst waiting to sell your property, provide working capital or business cashflow.

The interest rates on bridging finance will depend on how long you need the money for. Typically the shorter the term the higher the rate, though in many cases the premium is minimal.  Bridging Finance allows you to take advantage of a rising market by buying low and selling high, but you are exposed to the risk of a lower than anticipated sale price or even being unable to sell.