Bridging Finance

Short-term finance that could be the solution

Bridging Loans

Short term finance to cover any
gaps in funding.

At Word On The Street we offer bridging loans that can be used to cover a gap in funding until a longer-term solution is available. It can be used by individuals or businesses.

Unlike mortgages, bridging loans can be arranged quickly.

Speak to one of our Bridging Finance Experts today to see
how we can help with your short term finance needs.

Types of Bridge Financing

Bridge financing is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged.

There are four types of bridge loans, namely: open bridging loan, closed bridging loan, first charge bridging loan, and second charge bridging loan.

First Charge Bridging

A first charge bridging loan gives the lender a first charge over the property. If there is a default, the first charge bridge loan lender will receive its money first.

Second Charge Bridging

For a second charge bridging loan, the lender takes the second charge after the existing first charge lender. These loans are only for a small period.

Debt Bridge Financing

One option with bridge financing is for a company to take out a short-term, high-interest loan, known as a bridge loan.

Equity Bridge Financing

Sometimes companies do not want to incur debt with high interest. If this is the case, they can seek out venture capital firms to provide a bridge financing.

Advantage of
Bridging Finance

Bridge financing can give companies a much-needed short-term cash injection to temporarily cover the costs of
running the business or get the wheels rolling on an important investment or project. If there’s no alternative or the payoff promises to be greater than the cost, it can be a worthwhile option to pursue.

Disadvantage of
Bridging Finance

The biggest risk of bridge financing is digging into a deeper hole. These loans tend to come at a high cost and need to be paid back quickly. Equity bridge financing is often expensive, too, and can involve giving up shares at a big discount.

This largely depends on your personal financial situation and goals. We can help you understand the different types of mortgages available and help you determine which is best suited to you.

This depends on several factors, your income, your credit score and debt-to-income ratio. We will determine how much you can afford to borrow and provide you with a monthly payment estimate.

This depends on several factors, your income, your credit score and debt-to-income ratio. We will determine how much you can afford to borrow and provide you with a monthly payment estimate.

The interest rate for your mortgage varies based on the type of loan and your credit score. We can help you determine your current interest rate and give you an estimate of your monthly payments.

We will provide you with a timeline estimate that we can agree and work towards and explain the situation every step of the way.

We will provide you with a timeline estimate that we can agree and work towards and explain the situation every step of the way.

Is a bridging loan the right choice for me?

Bridge financing offers a temporary injection of capital to keep an entity covered and able to meet its needs until it receives an infusion of cash or regular, long-term financing.

These arrangements are short-term in nature, tend to be expensive, and are often used to cover things like short-term working capital needs and IPO expenses. Bridge financing can come in various forms including debt, which involves getting a bridge loan, and equity, which involves receiving cash in exchange for shares of ownership in the company.