{"id":5492,"date":"2020-05-15T13:32:15","date_gmt":"2020-05-15T13:32:15","guid":{"rendered":"https:\/\/swoopfunding.com\/na\/?post_type=knowledge-hub&#038;p=5492"},"modified":"2025-08-18T08:39:26","modified_gmt":"2025-08-18T08:39:26","slug":"bridging-loan","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/na\/knowledge-hub\/bridging-loan\/","title":{"rendered":"Bridging loan"},"content":{"rendered":"\n\n\n <div class=\"faq-accordion faq-accordion948\">\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading0948\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse0948\" aria-expanded=\"true\" aria-controls=\"collapse0\">\n What is a bridging loan? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse0948\" class=\"collapse show\" aria-labelledby=\"heading0\" data-parent=\".faq-accordion948\">\n <div class=\"card-body\">\n <p><em data-rich-text-format-boundary=\"true\">A bridging loan is a quick-turnaround, <a href=\"https:\/\/swoopfunding.com\/na\/business-loans\/short-term-loans\/\">short-term loan<\/a> (usually less than 12 months) made to an individual or business until either this loan can be cleared in full or a more permanent source of funding secured.\u00a0<\/em><br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>You can think of a bridging loan as a temporary loan that gets you from A to B, hence the \u2018bridge\u2019 idea. These loans can be secured against all types of property, including property that other lenders might deem unsuitable, and also against inventory.<br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>They are quick to arrange (from 48 hours) because typically they have flexible lending criteria and don\u2019t need extensive checks.\u00a0<br data-rich-text-line-break=\"true\" \/><br data-rich-text-line-break=\"true\" \/>You\u2019ll often hear \u2018bridging loan\u2019 used in the context of domestic or commercial property purchases, but you can use bridging finance for any commercial purpose, as long as you have a clear exit in place. In other words, a lender will want to know that, at the end of the term, you can either clear the bridging loan in full (with interest) or move it on to a more permanent type of finance with a traditional lender, e.g. a term mortgage.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading1948\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse1948\" aria-expanded=\"true\" aria-controls=\"collapse1\">\n Why choose a bridging loan? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse1948\" class=\"collapse \" aria-labelledby=\"heading1\" data-parent=\".faq-accordion948\">\n <div class=\"card-body\">\n <p>You might consider a bridging loan if you are:<\/p>\n<ul>\n<li>purchasing land or property<\/li>\n<li><a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/re-bridging-loan\/\">re-bridging<\/a> or extending an existing bridging loan<\/li>\n<li>expanding (or consolidating) your business<\/li>\n<li>paying off your business debts<\/li>\n<li>paying your SARS tax bill<\/li>\n<li>avoiding repossessions<\/li>\n<\/ul>\n<p>You\u2019ll also hear the terms \u2018<a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/re-bridging-loan\/\">re-bridging loan<\/a>\u2018 or \u2018bridge extension\u2019. If you\u2019re approaching the end of the term on your bridging loan and your exit plan isn\u2019t happening, you\u2019ll need to arrange a new bridging facility to replace your existing loan (re-bridge). You can either opt for a bridge extension with your existing lender, or you might find you\u2019re better off moving your loan to a different lender.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading2948\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse2948\" aria-expanded=\"true\" aria-controls=\"collapse2\">\n Pros and Cons of a bridging loan? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse2948\" class=\"collapse \" aria-labelledby=\"heading2\" data-parent=\".faq-accordion948\">\n <div class=\"card-body\">\n <ul>\n<li>Quick access to funds (24 hours from application)<\/li>\n<li>Can be used for a variety of purposes<\/li>\n<li>Usually without exit fees<\/li>\n<\/ul>\n<p>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0As bridging loans are usually there to \u2018bridge\u2019 one loan to another, it can incur high interest charges<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Not currently regulated so both lender and borrower at risk<br data-rich-text-line-break=\"true\" \/>!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A range of fees can add to overall cost<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading3948\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse3948\" aria-expanded=\"true\" aria-controls=\"collapse3\">\n Is it suitable for an SME? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse3948\" class=\"collapse \" aria-labelledby=\"heading3\" data-parent=\".faq-accordion948\">\n <div class=\"card-body\">\n <p>SME\u2019s often may find themselves shut out from the traditional lending market. As most businesses struggle to survive in the critical first 24-36 month period, many banks and lending institutions are wary of lending to businesses who have less than 15 employees and 2 years of successful trading history, a bridging loan may be a an option for a growing business that can leverage its growing prospects.<\/p>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"card\">\n <div class=\"card-header\" id=\"heading4948\">\n <h5 class=\"mb-0\">\n <a class=\"btn btn-link\" data-toggle=\"collapse\" data-target=\"#collapse4948\" aria-expanded=\"true\" aria-controls=\"collapse4\">\n Have you also considered? <\/a>\n <\/h5>\n <\/div>\n\n <div id=\"collapse4948\" class=\"collapse \" aria-labelledby=\"heading4\" data-parent=\".faq-accordion948\">\n <div class=\"card-body\">\n <p>Depending on how long you think you\u2019d take to repay the loan you can consider:<\/p>\n<ul>\n<li>short-term <a href=\"https:\/\/swoopfunding.com\/na\/business-loans\/\">business loans<\/a> \u2013 usually between 3 and 18 months (often referred to as <a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/working-capital-loan\/\">working capital loans<\/a>)<\/li>\n<li>\u2018term\u2019 loans \u2013 usually between two and five years (\u2018term\u2019 means medium- or long-term)<\/li>\n<li>very short-term loans \u2013 including <a href=\"https:\/\/swoopfunding.com\/na\/knowledge-hub\/revolving-credit-line-facility\/\">revolving credit<em>\u00a0<\/em>facilities<\/a> and other business overdraft alternatives<\/li>\n<li>long-term loans \u2013 these can run from 3 to 30 years, require monthly or quarterly payments from cash flow or profit, might restrict other financial commitments (e.g. debts, dividends or principals\u2019 salaries), and can require an amount of profit set aside for loan repayment<\/li>\n<li>balloon loans \u2013 relatively small monthly payments, ending with final \u2018balloon\u2019 payment to pay off the remaining loan balance<\/li>\n<\/ul>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n <script type=\"application\/ld+json\">\n    {\n        \"@context\": \"https:\/\/schema.org\",\n        \"@type\": \"FAQPage\",\n        \"mainEntity\": [\n                                {\n                \"@type\": \"Question\",\n                \"name\": \"What is a bridging loan?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"A bridging loan is a quick-turnaround, short-term loan (usually less than 12 months) made to an individual or business until either this loan can be cleared in full or a more permanent source of funding secured.\u00a0You can think of a bridging loan as a temporary loan that gets you from A to B, hence the \u2018bridge\u2019 idea. These loans can be secured against all types of property, including property that other lenders might deem unsuitable, and also against inventory.They are quick to arrange (from 48 hours) because typically they have flexible lending criteria and don\u2019t need extensive checks.\u00a0You\u2019ll often hear \u2018bridging loan\u2019 used in the context of domestic or commercial property purchases, but you can use bridging finance for any commercial purpose, as long as you have a clear exit in place. In other words, a lender will want to know that, at the end of the term, you can either clear the bridging loan in full (with interest) or move it on to a more permanent type of finance with a traditional lender, e.g. a term mortgage.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Why choose a bridging loan?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"You might consider a bridging loan if you are: purchasing land or property re-bridging or extending an existing bridging loan expanding (or consolidating) your business paying off your business debts paying your SARS tax bill avoiding repossessions You\u2019ll also hear the terms \u2018re-bridging loan\u2018 or \u2018bridge extension\u2019. If you\u2019re approaching the end of the term on your bridging loan and your exit plan isn\u2019t happening, you\u2019ll need to arrange a new bridging facility to replace your existing loan (re-bridge). You can either opt for a bridge extension with your existing lender, or you might find you\u2019re better off moving your loan to a different lender.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Pros and Cons of a bridging loan?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"Quick access to funds (24 hours from application) Can be used for a variety of purposes Usually without exit fees !\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0As bridging loans are usually there to \u2018bridge\u2019 one loan to another, it can incur high interest charges!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Not currently regulated so both lender and borrower at risk!\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A range of fees can add to overall cost\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Is it suitable for an SME?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"SME\u2019s often may find themselves shut out from the traditional lending market. As most businesses struggle to survive in the critical first 24-36 month period, many banks and lending institutions are wary of lending to businesses who have less than 15 employees and 2 years of successful trading history, a bridging loan may be a an option for a growing business that can leverage its growing prospects.\"\n                }\n            },                                {\n                \"@type\": \"Question\",\n                \"name\": \"Have you also considered?\",\n                \"acceptedAnswer\": {\n                    \"@type\": \"Answer\",\n                    \"text\": \"Depending on how long you think you\u2019d take to repay the loan you can consider: short-term business loans \u2013 usually between 3 and 18 months (often referred to as working capital loans) \u2018term\u2019 loans \u2013 usually between two and five years (\u2018term\u2019 means medium- or long-term) very short-term loans \u2013 including revolving credit\u00a0facilities and other business overdraft alternatives long-term loans \u2013 these can run from 3 to 30 years, require monthly or quarterly payments from cash flow or profit, might restrict other financial commitments (e.g. debts, dividends or principals\u2019 salaries), and can require an amount of profit set aside for loan repayment balloon loans \u2013 relatively small monthly payments, ending with final \u2018balloon\u2019 payment to pay off the remaining loan balance\"\n                }\n            }          ]\n    }\n    <\/script>\n \n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":39,"menu_order":56,"template":"","segment":[295],"class_list":["post-5492","knowledge-hub","type-knowledge-hub","status-publish","hentry","segment-business-loans"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_blog_full":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>What is a bridging loan? A bridging loan is a quick-turnaround, short-term loan (usually less than 12 months) made to an individual or business until either this loan can be cleared in full or a more permanent source of funding secured.\u00a0You can think of a bridging loan as a temporary loan that gets you from A to B, hence the \u2018bridge\u2019 idea. These loans can be secured against all types of property, including property that other lenders might deem unsuitable, and also against inventory.They are quick to arrange (from 48 hours) because typically they have flexible lending criteria and don\u2019t&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Alexandre Colucci","url":"https:\/\/swoopfunding.com\/na\/author\/alexcolucci\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub\/5492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/users\/39"}],"version-history":[{"count":0,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/knowledge-hub\/5492\/revisions"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/media?parent=5492"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/na\/wp-json\/wp\/v2\/segment?post=5492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}