What is Bridging Finance?
Hibernian Capital is a leading arranger of commercial bridging finance in Ireland.
Bridging financing is a form of temporary financing intended to cover a company’s short-term costs until the moment when regular long-term financing is secured.
Thus, it is named as bridging finance since it is like a bridge that connects a company to debt capital through short-term borrowings.
More often than not it can be quite difficult to access the funds needed in time as conventional lenders will not provide the capital at an early stage.
Why use Bridging Finance?
Commercial bridging loans are a short term solution that provides interim funding until an exit strategy, like a refinancing or a sale, can be executed.
Bridging Finance may facilitate the purchase of lands or existing properties so construction can begin immediately hence making it an attractive source of funding for developers.
As stated above, conventional lenders may not lend at this early stage but once development has been completed, refinancing is a viable option.