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A bridging loan is a short-term loan that sefa provides to an enterprise to finance its working capital, such as stock and/or operating overheads.
It is a credit facility designed for business-to-business transactions, and it is usually suitable for businesses that have secured firm contracts — or purchase orders — with other businesses, that is, businesses that offer services and/or products to other businesses.
The benefits of bridging loans:
- A bridging loan allows your business to meet short-term financial obligations by providing immediate cash flow.
The repayment term:
- For this financing facility, the repayment duration is linked to the specific term of a contract, up to 12 months.