Your guide to bridging finance funds

Maria Merricks investigates bridging finance funds as an alternative income strategy.

Following the sharp reduction in mortgage availability and traditional secured lending streams, the demand for short term loans has increased substantially over the past two years. Known as bridging finance, the aim is to ‘lend where the banks are not’. A classic illustration is a typical auction purchase: the purchase is made and the deposit is paid, yet a bank is not able to lend the required funds within the 28 days needed to settle. Bridging finance companies generally complete a deal within seven to ten days, enabling the borrower to complete the purchase and repay the loan as a ...