Bridging loan
A short-term loan, usually secured on property, that "bridges" a gap until longer-term money arrives, such as a mortgage or a sale.
- Secured on assets
How it works
A business bridging loan (or commercial bridging loan) covers a short gap in your finances, for example buying a property before a mortgage is in place.
- Usually secured on property or other assets.
- Typically lasts no more than 18 months.
- Can be arranged quickly, sometimes in as little as 48 hours.
- Interest rates are usually higher than for commercial mortgages and other business finance.
- You must show how you will repay it, known as the "exit", such as a mortgage, a sale or another source of funding.
Common uses include property purchases and deposits, large stock purchases, renovations, acquisitions, and working capital during a transition.
Upsides and downsides
Upsides
- Very fast, sometimes within 48 hours
- Flexible uses
- Based mainly on security, not long trading history
Downsides
- Expensive compared with most business finance
- Short term, so you need a reliable exit
- Fewer banks offer them because of the risk
Risks
- If the exit falls through, you may face high costs or lose the property
- Costs add up quickly if repayment is delayed
What it costs
- How it is priced
- Interest (usually higher than other business finance) plus fees
- Costs that are easy to miss
- Arrangement, valuation and legal fees
- Interest builds up quickly if the exit is delayed
Based mainly on the value of the property or assets offered as security.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- You need money fast for a short time and have a clear way to repay
- You have property or other assets to offer as security
Unlikely to fit when
- You do not have a reliable exit
- Your need is long term
- You are not in a hurry (bridging is for short-term needs while longer-term finance is arranged)
- You have no property or other assets to offer as security
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company
- Assets, usually property, to offer as security
- A clear way to repay the loan (the exit)
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all alternative and fast debt
0%
0 of 2 ticked
- Exit plan
- Property or asset details
Regulation and protections
Most business bridging is commercial finance, which is not generally subject to statutory conduct regulation in the UK. Read the terms carefully and check the lender's complaints process.
Types of provider: Specialist bridging lenders; Some banks and building societies.
Also consider
Sources
- British Business Bank: What is a business bridging loan? · checked 7 October 2026
- British Business Bank: How to finance a commercial property purchase · checked 7 October 2026
- UK Finance: The Standards Framework for Invoice Finance and Asset-Based Lending (January 2025) · checked 7 October 2026