Bridging Loans

 A bridging loan is a short-term financial instrument designed to "bridge" a gap between two different financial transactions. It is typically used in real estate and property transactions, but it can also be used in various other scenarios where quick access to funds is needed. 

 Bridging loans are short-term loans, usually with a duration ranging from a few weeks to a few months. They are not intended for long-term financing but are instead meant to provide temporary funds. 

 One of the primary advantages of bridging loans is their quick approval and funding process. They are designed to provide funds promptly, often within a few days, which is crucial when timing is essential. 

 Bridging loans serve as interim financing to cover immediate financial needs, such as purchasing a new property before selling an existing one. They are often used by property developers, investors, and homeowners during the transition between property transactions. 

 Borrowers need to have a clear exit strategy for repaying the bridging loan, which is often the sale of a property or the securing of long-term financing.