Glossary

What is bridging finance?

Bridging finance is short-term borrowing designed to cover a temporary gap. As the name suggests, it bridges the space between an immediate need for funds and a point in the near future when money is expected to come in, such as a customer payment, a sale or longer-term funding.

When businesses use it

Bridging is about timing rather than long-term funding. A company might use it to seize an opportunity, smooth a seasonal dip or keep operations moving while waiting for expected cash.

  • Covering supplier costs ahead of a confirmed customer payment.
  • Funding a short-term opportunity that cannot wait.
  • Smoothing a known, temporary cash-flow gap.

Things to weigh up

Because bridging is short term, it works best when you have a clear and realistic plan for how it will be repaid. The key question is always whether the expected funds will actually arrive in time. Short-term borrowing without a credible exit can create more pressure than it relieves.

Credicorp lends only to UK limited companies and LLPs for business purposes. Our Credicorp Flex and Credicorp Slice facilities can suit short-term needs depending on your circumstances. The rate and term that apply are shown in your offer, and we assess affordability before lending.

See also: What is net working capital?, What is cash flow?, What is asset finance?.

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