Bridging finance (business)

Definition

Bridging finance is a short-term facility designed to cover the interval between an immediate funding need and a known future source of money — a property sale, a refinance, or a large receipt. It's fast but typically dearer than long-term borrowing, reflecting its speed and short life.

In plain terms

It's a stopgap: money now to reach money later. Useful when timing, not affordability, is the problem.

Why it matters for your company

Because it's costly, a bridge only makes sense when the exit — the money it bridges to — is certain. For genuine timing gaps, a working-capital facility may suit better. Compare with the true cost calculator.