What is a Bridging Loan?
A bridging loan is a type of short-term financing that helps bridge a temporary cash shortfall when buying a new property before selling an existing one. It is a loan designed to “bridge” the gap between purchasing a new property and selling an existing one. It is also known as a “bridge loan” or “interim financing.”
Bridging loans are usually secured against the existing property and can be used to finance the purchase of a new property, such as a new home or commercial property. At the same time, the borrower waits for the sale of their existing property. The loan can be used to cover the deposit and other associated costs of buying the new property, and it can be repaid in full once the sale of the existing property is complete.
Bridging loans are typically short-term loans, ranging from a few weeks to a few months, and they usually come with higher interest rates than traditional loans. They are often used by property developers, investors, and individuals who need to move quickly and require fast access to cash.
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.