Bridge Funding

A bridge loan is usually availed by a borrower who has near term liquidity requirement, and is expecting a substantial cash inflow in near future. However, these loans are expensive and induce pressure on the borrower to quickly realise their expected cash flows, or sell some other assets to pay down the high-cost bridge loans.

A good borrowing strategy will balance cost of funds and, financial stability, while ensuring the borrowing objectives in a timely manner. An ill-planned or thought-out borrowing strategy can have a detrimental impact on a borrower's financial well-being and real estate plans.