What is a bridge loan and who is it to be considered by?

What is a bridge loan? It is a short term loan which assists the borrowers to cope with temporary shortages of cash. Bridge loans are also used by businesses to continue running even as they acquire long-term financing and by homeowners when switching between homes. These are quick to access loans that are flexible but not intended to be used in the long term as they are more expensive. A borrower should only contemplate a bridge loan in case he or she has a clear-cut solution to repayment e.g. the sale of an asset or a permanent financing with approved repayment in the near future.