Bridging Finance

In essence, bridging finance is a valuable tool for SMEs facing short-term financial challenges or seeking to capitalise on time-sensitive opportunities. By providing quick access to capital, it can help businesses navigate critical periods and achieve their financial goals.

Key Uses of Bridging Finance for SMEs:

Overcoming Cash Flow Shortfalls:

Bridging finance can provide the necessary funds to cover immediate expenses like payroll, rent, or supplier payments when cash flow is temporarily tight.

Facilitating Business Transitions:

During significant business transitions, such as mergers, acquisitions, or relocations, bridging finance can help cover costs and maintain operations while the transition is underway.

Seizing Time-Sensitive Opportunities:

If a business encounters an unexpected opportunity, such as a lucrative contract or the chance to acquire a competitor's assets, bridging finance can provide the capital needed to act quickly before the opportunity is lost.

Supporting Growth Initiatives:

Securing the land is the first step in any development project. Development finance provides the capital to acquire the necessary land.

Key Characteristics of Bridging Finance:

Short-Term:

Bridging loans typically have a short repayment term, usually ranging from a few months to a year.

Higher Interest Rates:

Bridging finance often carries higher interest rates compared to traditional loans due to the short-term nature and higher perceived risk.

Secured or Unsecured:

The loan may be secured against assets, such as property or equipment, or unsecured based on the business's creditworthiness.

Flexible Repayment Options:

Repayment structures can be tailored to the specific needs of the business, such as interest-only payments during the initial period.

Speed and Flexibility - Preserving Cash Flow - Supporting Growth

Let’s Work Together

Get in touch so we can start working together.