A bridging loan is a short-term financing option used to "bridge" the gap between the purchase of a new property and the sale of an existing one. It provides immediate funds, enabling individuals or businesses to complete a purchase before securing long-term financing or selling an asset.
 

Key Characteristics of Bridging Loans:
 

• Short-Term: Typically ranging from a few weeks to a year.

• High Interest Rates: Due to their short-term nature and the urgency often associated with them.

• Secured Loan: Usually secured against property or other high-value assets.

• Fast Approval: Quick processing times to meet urgent funding needs.

• Flexible Repayment: Options to repay in full once long-term financing is arranged or the existing property is sold.