Bridge finance is short-term funding used to cover a gap until a longer-term or permanent solution is in place — for example, financing a land or asset purchase ahead of project finance, refinancing or a sale. It is typically faster to arrange and priced higher than permanent debt.
It lets sponsors move quickly on time-sensitive opportunities, with a clear, credible exit (refinancing or sale) being essential.
Used in real estate, acquisitions and special situations.
Bridge finance is short-term funding used to cover a gap until a longer-term or permanent solution is in place — for example, financing a land or asset purchase ahead of project finance, refinancing or a sale. It is typically faster to arrange and priced higher than permanent debt.
Used in real estate, acquisitions and special situations.
Bridge finance is short-term funding that covers a gap until permanent capital — project finance, a refinancing or a sale — is in place, whereas a term loan is the longer-dated solution itself. Bridges are arranged faster and priced higher, with repayment coming from the planned exit rather than amortising over many years.
The exit comes first: lenders want a clear, credible route to repayment, usually a refinancing or sale, within the bridge’s short life. They also assess the value and quality of the asset securing the loan, the sponsor’s track record and whether the timetable for the permanent solution is realistic.
Speak to a partner about how this applies to your transaction.
