Bridging finance, as the name itself suggests, helps in creating a bridge between two transactions. But such kind of loan is very much able to serve the financial needs of a property developer whether taken for first charge or second charge account. Closed loans have a fixed date by which the loans need to be repaid in full. Being less risky for the lender it comes with low interest rates. However an open kind means a loan which is not bound by fixed contract terms. This type of loan is of course greater risk for the lender and therefore come with higher interest rates. These kinds are very flexible in nature. They have the ability to cater to needs of all types of clients ranging from individuals to small firms. They also provide concession on loans for people who have high credit history rather than those who faces problems in getting loans and mortgages. Purpose For Bridging FinanceBridging loans are normally meant for purchasing newly furnished homes even before the existing property of the borrower is being sold. These loans are typically meant to address the monetary needs of the people in the real estate industry. Bridging finance is also there to serve big property developers and builders. The main clients of bridge financing industry are property conversions, private building projects; land acquisition and property developers. These kinds of loans are popular in real estate investment markets. So, as an example in property auctions the buyer is given a time period of 28 days to complete the transactions and he might not get payment for sale of his old property in that time. Here such loans help a lot. Again for re mortgaging purposes kinds of loans work very well. When there is an extreme delay this loan helps in meeting first mortgage payment, although a better mortgage plan is being prepared. This helps a lot in meeting the financial requirements and fulfilling the gaps. It can also be used to add up investment capitals or to meet a special investment circumstances. Thus it has got multiple purposes. In bridging finance speed is the most important factor. It normally takes one week for processing of these bridging loans. However it also depends upon the attorneys, how efficiently he can fulfill the requirements of such loan transfers. A financial broker also helps a lot in accomplishing the whole process of fund transfer. The payment options are also flexible like the loan itself. There are monthly payment options with interest charges. The client can also request for their choice of rate of interest. Here the principal amount might be paid at any point of time in order to decrease the interest payment.