Bridge financing

What is it

Bridge financing, also known as a bridge loan, is a short-term mortgage loan that is often used in the real estate market. The purpose of this loan type is to bridge a temporary financial gap between the need for resources for the purchase or development of real estate and the moment when longer-term financing becomes available or when resources are released from the sale or development of a real estate object or portfolio. The collateral for this loan is the relevant real estate object, land position or real estate portfolio.

For whom

Real estate developers, builders/contractors, real estate investors or real estate traders and real estate flippers.

What is the purpose

  • Making the necessary financial resources available quickly and temporarily, often in anticipation of an expected source of income or planned transaction
  • Facilitating a quick purchase of an object and/or land position (taking advantage of opportunities)
  • Buying time in a banking refinancing process
  • To bridge temporary liquidity problems (rescue loans)

What is funded

  • Purchase of new real estate (object and/or land position)
  • Existing real estate (object and/or land position)
  • Construction and transformation costs
  • Conversion/renovation costs
  • Other development/foundation costs

In which phase

  • Purchase phase
  • Permit process
  • Construction phase
  • Phase prior to refinancing

Financing partners of Novel Finance

  • Dutch and international banks
  • Specialist project financiers (international)
  • Real estate developers
  • Builders/contractors
  • Peer-to-peer & crowdfunding platforms
  • Private investment funds
  • Private investors