Bridging Loan

How bridging loan works

The lender considers the security and how the facility will be repaid, such as sale or a longer-term refinance. Interest may be paid monthly, retained or added to the balance, with fees and final repayment obligations set by contract.

Practical UK business example

A company buying commercial premises before a planned property sale considers a bridge. It checks the sale timetable and a realistic alternative if the sale is delayed.

Illustrative example only; not a finance quotation or a client case study.

Why it matters

It can address a time-sensitive transaction where the long-term funding is not yet available. The short duration makes exit planning and contingency costs particularly important.

Limitations and common misconceptions

Bridging finance is the same broad concept, not a separate duplicate product. Property security or a business purpose does not automatically make every bridge unregulated, and future refinance is not guaranteed.

Explore property finance to discuss how the structure relates to your business.