Bridge financing

Bridge financing is a temporary loan that allows commercial property owners to acquire, upgrade, or expand their real estate holdings without waiting for proceeds from the sale of existing assets. The loan closes the liquidity gap between capital outflow and inflow.

Common uses include office relocations, retail expansion, and portfolio growth for investors. Loan terms typically run from several months to two years and are repaid once the original property sells and funds are received.

Lenders assess bridge facilities carefully, requiring security over both properties, documented sale intent, and realistic timelines. Interest rates and fees are usually higher due to the short duration and elevated risk profile.