What is Bridge Financing
Bridge financing can be defined as a form of interim financing options that is found in the market. It is not a new term as it may seem to many. It has been there and in operation for a long time period. This type of loan is very popular for the companies and the business who do not have enough working capital. It is used by the companies to make sure that they have a strong financial base on the short term in the case when they are arranging for the long term financial option. They are used when they cannot find finances from their account because of some delays maybe on the processing of bank statements or any problem occurring in the financial processes.  Read more

Bridge financing have very many benefits to the companies. They are savior at the times when the company is running out of working capital. They are the ones that the company will apply for. You will find that most of the business rely on the bridge loans when waiting for their financial deals to mature or come into effect. These bridge loans can be issued by a hard money lender or a financial group or sometimes even the commercial banks are lending it. Most of the bridge loans are in the form of equity investment or a loan. it will apply is the time that the company is waiting for the future financing is shorter and it needs to remain operating and not bankrupt until the time it will get the long term financing. Therefore the short working capital needs like employees salary, transport, acquisition of raw materials, communication and even document processing is well catered by these types of loans. For instance if the company has to get money after one year and it has in its account five months capital then it will mean that , it will apply for the loan for seven months until it gets its finances from the long term option. More info at  https://en.wikipedia.org/wiki/Bridge_loan

Bridge financing is also very common in the real estate market. It is used by real estate agents to buy a house or home. Whatever is required in these loans is the presentation of the sales agreement to the lender. He or she is therefore to find out the down payment as the basis of giving the bridge loan. It is used to give the loan before the mortgage loans applied by the client matures. Info on  bridging loan hsbc