Bridging finance is generally designed for a defined short-term requirement. It may be considered when a business faces a timing gap between an immediate need and an expected future event, subject to eligibility and applicable terms.
A temporary bridge, not a permanent answer
The purpose and expected exit from short-term finance should be understood before proceeding. Businesses should consider how the facility will be repaid and what happens if the expected event is delayed.
Questions worth asking
Because terms vary, a careful discussion is essential.
- What is the total cost?
- What fees may apply?
- What is the expected tenure?
- What security or collateral may be required?
- What happens if repayment is delayed?
Make the decision in context
A time-sensitive opportunity can feel urgent, but the funding decision still deserves careful assessment. Consider the cost, the realistic benefit to the business and the risks if circumstances change.
General information only. This article does not constitute financial, legal or investment advice and should not be treated as a funding offer. Funding availability and terms are subject to eligibility, assessment and the applicable program.