Bridging finance addresses a defined short-term gap, often while a sale, refinance or another expected event is pending. Its usefulness depends heavily on that exit plan.

Delays can increase costs and extend exposure. Consider what happens if the expected sale or refinance takes longer or produces less than anticipated.

Read the interest calculation, fees and deadline carefully. Temporary funding still requires a realistic repayment source and a contingency plan.

Key takeaways

  • Bridging finance addresses a defined short-term gap, often while a sale, refinance or another expected event is pending.
  • Delays can increase costs and extend exposure.
  • Read the interest calculation, fees and deadline carefully.