Bridging finance is a form of short-term, alternative finance designed to provide property investors with flexible funding for their investments. Helping to bridge the gap between payments, bridging finance is often used by people or companies who want to:
- Secure payment on an asset while long-term financial solutions are worked on in the background
- Keep moving plans afloat by bridging the gap between sale and completion dates in a property chain
- Plan speedy turnarounds for renovation projects
- Buy property quickly via auctions
Generally, borrowers use some form of collateral as security, including real estate or stock inventory. While bridging finance is a short-term solution, term lengths can vary between lenders. At MFS, our funding is available from 3-24 months.
Bridging finance will need to be repaid in full at the end of the term. To do this, an exit strategy will need to be arranged.