bridgerahoituksena

Bridgerahoitus, also known as bridge financing or bridging loan, is a type of short-term financing used to cover a gap until a longer-term financing is secured or a specific financial goal is achieved. It is often employed in situations where immediate funds are needed but traditional loan approvals may take considerable time. The term "bridging" refers to its function of bridging a financial gap.

These loans are typically secured by assets, such as real estate, and have a shorter repayment period, often ranging from a few months to a year. The interest rates on bridging finance are generally higher than those of conventional loans due to the short term and higher risk involved. Lenders assess the borrower's ability to repay the loan once the long-term financing is in place or the intended transaction is completed.

Common uses for bridging finance include property transactions, where a buyer needs funds to purchase a new property before their current one is sold, or business acquisitions where immediate capital is required to finalize a deal. It can also be used to facilitate development projects or to consolidate short-term debts. The flexibility and speed of access to funds are key advantages, but the higher cost and the need for a clear exit strategy are important considerations for borrowers.