Short term loan used as coverage when buying a new property before selling an existing one.

Bridging finance can be an expensive way to borrow money. However, sometimes it is the best option as you can cover shortfalls short-term without the normal redemption penalties of mortgages or some loans. In addition, there is the possibility to secure briding finance very quickly to enable sales that otherwise would fall through to continue.

Companies and investors will often choose bridging finance as they have deadlines for their financial resources to be elsewhere. When large profits are already being made some business people of individuals are willing to sacrifice a proportion of their profit to guarentee their overall gain.