Bridging loans guide

A bridging loan in relation to property development is short-term finance that is used to fill a temporary funding gap. Its main purpose is to provide immediate cash flow.

Bridging loans offer developers short-term property finance they can use to fund a development project in the early stages when they might not yet qualify for a full development loan.

Developers might also use bridging loans towards the end of their projects if they need additional cash before the development can be sold.

Normally, bridging loans are interest-only loans, and the principal is settled when a specific loan condition is fulfilled.