Bridge Loan Facility

"It may also be the case that the intended withdrawal of the debtor from the bridge loan takes place through the disposal of the real estate, a path that has recently been increasingly chosen due to the absence of long-term financing arrangements from the banking sector. Brightstar Financial's Rob Jupp, CEO of Brightstar Financial, emphasizes that current account credit and short-term investment financing are alternative ways to bridge credit lines.

Mr Kinane added that recently an increased number of long-term creditors have entered the short-term markets "while there is also the alternative of supporting a deal with privately owned companies". However, they can be costly and often give the borrower some degree of ownership over the deal.

Enterprise Finance Chief Executive Officer Danny Waters says the bridge loan is a truly exceptional offering that does not have similar offerings on the board that are just as agile and on time. Like all financings, agents must understand the needs of their clients and offer appropriate financing solutions. Guidance must be built on the client's capacity and intention to pay back, an appreciation of the type of facility provided and best and worst case scenario in the case of non-repayment or refinancing.