A bridge loan (or bridging finance) is a short-term financing solution used to bridge a temporary financial gap. This type of credit is often utilized in real estate projects, for example, when capital is required for the purchase or renovation of a property while the sale proceeds from another asset are not yet available.
Characteristics of a bridge loan:
- Short-term: Usually with a term of 6 to 24 months.
- Flexibility: Often tailored to the specific timing and cash flow of a project.
- Targeted: Used for situations where rapid liquidity is needed, such as in real estate trading, renovations, or projects aimed at quick acquisition and resale.
Who is it intended for?
A bridge loan is primarily used by commercial real estate professionals, such as real estate investors, traders, or developers, who have experience with real estate projects and can provide a demonstrable track record.
The actual loan is provided by one of the financiers from our network.
