Bridging finance is short term funding that is underwritten against the asset that is being used as security.
The key issues for bridging loans are the valuation report and clean title.
They do not normally assess the complete project and the people behind the deal in the way that a standard lender would.
Bridging companies will provide bridging loans on everything from an individual residential property through to development sites and commercial buildings.
A bridging loan term is usually 3-6 months, with interest charged on a monthly basis.
Due to the uncomplicated underwriting, the interest cost is normally higher than that of a high street bank.
Bridging companies believe that they can usually complete a deal much faster than a high street bank.