Bridging Finance Explained: When Speed Matters

Bridging finance is one of the most versatile tools in the commercial finance toolkit. It provides short-term funding, typically for 6-36 months, to help businesses and investors move quickly on opportunities. Common uses include auction purchases, chain breaks, refurbishment projects, and buying property before selling an existing one. The key advantage is speed — loans can be arranged in as little as 48 hours. Costs typically include an arrangement fee of 1-2% of the loan amount, plus monthly interest of 0.5-1.5%. While more expensive than long-term finance, the cost is often justified by the opportunity secured. We arrange bridging loans from £25,000 to £50 million, on first or second charge basis, with LTVs up to 85% of forced sale value.