What’s the difference between a bridging loan and a development loan?

Both bringing and development loans are forms of short-term lending that are secured against your assets, but their purposes and conditions differ.

Bridging loans carry a monthly interest rate and are a quick way to access short-term cash. They can come with an agreed repayment date (closed), or a maximum term rather than a fixed date for repayment (open). You need to provide an exit strategy to be granted one, but they are generally a flexible way to access immediate finance.

A development loan is more specific, and is granted to help you develop or refurbish a property. Unlike with bridging loans, developed finance is calculated annually and funds are released in stages as the development progresses.

At Evolve Commercial Financial, we can help you with both bridging and development loans, but it’s important to first identify which is the more suitable option for you, so have a chat with us and we’ll work that out together.