A bridge is designed to solve a temporary funding need. Its value is often the opportunity it creates rather than the length of time it remains in place.
Common uses
Short-term finance may support an auction purchase, a time-sensitive acquisition, refurbishment before refinance, or a purchase that cannot immediately meet a long-term lender’s criteria.
The exit matters most
The lender will want to understand how the facility will be repaid. A sale or refinance should be realistic, supported by evidence and achievable within the proposed term.
Understand the complete cost
Interest is only one element. Arrangement, valuation, legal and exit costs—and whether interest is paid monthly, rolled up or retained—can change the amount available and the overall cost.
Build in enough time
A plan should allow for valuation, legal work and possible delays in the exit. Speed at the start should not create unnecessary pressure at the end.