Loans Blog

The most commonly understood type of bridging loan is one that is taken to fund the purchase of a new property prior to the sale of an existing one - meaning that the temporary financial shortfall can be breached until the repayment funds are released.

But bridging loans can be used for quite a variety of other circumstances. For example, if a company sees a great opportunity to make a profit on a volume stock purchase, but is in financial difficulty, the company can arrange short-term bridging loan finance to fund the purchase of that stock. They can then repay the bridging loan once the stock has been sold and use the profit to get company finances back on track. It's simple and it works.