The term bridging loans is used to describe a type of short-term loan in the financial industry. Bridging loans are typically taken out over a short period of time in order to finance projects. Bridging loans are often used for commercial property purchases, to quickly complete on a property or retrieve property from foreclosure, and take advantage of a shot-term financing opportunity in order to secure long term financing. Bridging loans are often charged at a premium interest rate. As an Example you may be trying to convert a old house into a block of apartments and your bank will provide you with a sum of money only after a six month period, you might therefore take out a bridging loan to finance the project while you are waiting for the bank. You may want to purchase a new house but have not sold your own property but will lose out on the purchase if you do not buy there and then - you may want to use a bridging loan for this purpose.
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