The trend towards bridging finance

The term "bridging finance" is being used with increasing frequency in property circles. But what does it really mean? Kevin Cimring, MD of Bridgeway Limited, explains that there are various forms of property-related bridging finance. Essentially, however, all bridging finance transactions are aimed at assisting the client in obtaining quick access to funds which may only be due to the client at some future date.

The most typical example cited by Cimring relates to a seller of property, who generally waits up to three months or longer to receive his proceeds. By concluding a bridging finance transaction, the seller can obtain his surplus proceeds at a much earlier date.

Cimring says there are various reasons why sellers approach Bridgeway for bridging finance. The seller may need the funds to pay a deposit on the purchase of a new property. Alternatively, the funds may be required in order to obtain a rates clearance certificate in respect of the existing sale. On the other hand, the requirement for surplus funds may be totally unrelated to the property transaction and may, for example, be needed to settle some old debts.

Bridging finance also has application in a number of other property related circumstances. For example, a person who has successfully been granted a second bond may be faced with a waiting period of up to 6 weeks or longer before funds become accessible. Once again, Bridgeway advances these proceeds to the client immediately and recovers its funds on the registration of the bond. Bridging finance is also used frequently to assist buyers in paying transfer duties and costs.

Bridging finance has become a useful tool in eliminating financial barriers to the transfer process, says Cimring.

But Cimring says that there are certain factors one should look at carefully before simply engaging in a bridging finance transaction. Obviously one of the most important factors relates to the fees and costs involved. Different companies have different pricing structures. Bridgeway only charges a once-off fee, irrespective of how long the transaction takes. Cimring explains that one of Bridgeway's philosophies is to remove the stress of the entire process from the client, and to place the stress of waiting for registration on Bridgeway. In addition, a once-off fee is totally transparent for the client, making it easy for the client to see the cost implications at a glance.

Finally, Cimring notes that while the concept of bridging finance for sellers was a relatively unknown concept a few years ago, the bridging finance industry is becoming increasingly mainstream. Cimring says that competition in this industry is healthy, as it will compel the various bridging finance players to offer competitive rates and service.

For more information on Bridgeway and its various bridging finance solutions, please go to, or contact tollfree 0800 BRIDGE.

Article by : Kevin Cimring -