# Bridging Finance: The Complete Guide for Property Investors
Bridging finance has become an essential tool for property investors, developers, and homebuyers who need short-term funding solutions.
## What is Bridging Finance?
Bridging finance is a short-term loan designed to “bridge” the gap between buying a property and securing long-term financing or selling an existing property.
## When is Bridging Finance Used?
### Property Investment
– Quick property purchases
– Chain-breaking situations
– Property development projects
– Auction purchases
## Types of Bridging Finance
### Closed Bridge
– **Exit strategy confirmed** before completion
– Lower interest rates
– Shorter terms (3-12 months)
– Sale of property already agreed
### Open Bridge
– **Exit strategy not yet confirmed**
– Higher interest rates
– Longer terms (up to 24 months)
– More flexible exit options
*Need bridging finance for your next property deal? Our specialist brokers can help you find the right solution.*