A bridge loan is short-term asset-based financing typically extended over months to years until an exit, such as long-term financing or sale, is established. They are commonly referred to as asset-based bridge loans in the US and bridge loans or ‘conditional loans’ or swing loans in the UK.
In addition, bridging loans raise funds faster than bank loans. Good opportunities don’t last long. So using a loan that has fewer requirements and ends quickly is an excellent option. This allows investors to grab fleeting opportunities before someone else holds them.
