BRIDGE FINANCE

Bridge finance, often called bridging loans, is a short-term funding option available to limited companies that need immediate access to capital while waiting for longer-term funds to be secured. It is most commonly used to complete a purchase or meet a pressing financial commitment while a business arranges refinancing, sells an asset, or secures a longer-term loan.

For limited companies, the key advantage of bridge finance is speed. It enables a business to move quickly when opportunities or urgent needs arise. However, because it is temporary finance, costs and fees are typically higher, and repayment periods are short. A clear repayment or exit strategy is therefore essential before committing to this type of facility.