The Pros and Cons of Both Options

 While each option has its pros and cons, these aren’t always easy to tell apart when simply considered at face value. However, it’s important to understand how they work so you can make an informed decision about which might be right for your project. 

Bridging finance helps developers pay for costs associated with property developments until construction starts and monthly rent begins coming in. The funds are then repaid after rent begins coming in through a repayment schedule set up during loan negotiations. 


As such, bridging finance is typically used as short-term financing rather than long-term financing. On the other hand, development loans are longer-term loans that generally last between five to 10 years. They’re also often secured by property assets instead of cash flow like bridging finance loans.

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