Bridging & Short-term Finance
There is sometimes confusion across the terms ‘Bridging’ and ‘Short Term Finance’ which in reality are essentially the same thing i.e. funding designed to get a borrower from where they are now to where they want to be in a short space of time.
Bridging was originally a funding product designed for people who wanted to buy a new residence before their old one was sold – therefore a financial bridge between those two transactions.
This has evolved over the years, the above scenario is still a common one for which bridging is used, but the term now extends to all types of funding where either a quicker than usual funding line is needed against a property or something needs to happen to the property before it can be sold or mortgaged through traditional longer term finance.