Bridge financing

Bridge financing is a method of financing ,

used to maintain liquidity while waiting for
an anticipated and reasonably expected
inflow of cash .
Bridge financing is commonly used when
the cash flow from a sale of an asset is
expected after the cash outlay for the
purchase of asset.

Bridging finance arranges large sums of

money to be borrowed within a short
period of time. The repayment period may
vary between six to twelve months and
the finance is usually provided to help
purchase property .

Eg-:Bridging Finance is ideal for a home

owner who has yet to receive payment
form the sale of their home and whishes
to purchases a new property .
When selling a house the owner may not
receive the cash for 90 days, but has
already purchased a new home and must
pay for it in 30 days .
Bridge finance covers a gap of 60 days in cash flows .
Bridging finance ensures that you do
not miss out on a deal simply because
there was no cash at that point of time.
Moreover it provides an easy and fast
approach to processing and makes
bridging finance a popular choice.
There are two types of bridging finance:
Closed bridging finance – where the lender
and borrower settle a certain date in the
future for the repayment of the loan amount
and this agreement is backed by legal
contracts. This type of bridging finance is
secured for lenders and is usually given for a
purchase of a property.
Open bridging finance – Do not define a date
for repayment and the amount may be used
for other purposes other than purchasing a
property.

A consortium is an alliance of companies, individuals, or other entities that got together

to achieve a specific objective. it is a business club that offers benefits to its members.