Bridge finance meaning

In general, a borrower seeking external funding usually has two main avenues available: securing a loan, or issuing debt securities on the debt capital markets For the purposes of this Checklist, our focus here is on lending products alone. For further detail on loan categories and structures, see Practice Note: Overdrafts, term loans and revolving credit facilities. For information on debt securities, consult the Practice Notes: Debt capital market finance versus loan finance and Key features of the debt capital markets. Overdrafts The reason for borrowing is central to selecting the most appropriate loan type and choosing the lender. Where the borrower needs swift, flexible, short term financing to support temporary cash flow management needs (for example, to bridge timing gaps between supplier payments and customer receipts), an overdraft is typically the most suitable option in such circumstances...

Banking & Finance—October 2024 case round-up Brierley v Otuo and others [2024] EWHC 2549 (Ch) — Security: cost recovery on legal mortgages The court refused the mortgagee’s appeal against a 28 July 2023 order that barred recovery of sale and enforcement costs on specified properties. The decision followed the established rule on legal mortgages set out in Fisher & Lightwood’s Law of Mortgage (paragraph 55.6). Put simply, unless the mortgage contains an express term, there is no implied duty on the mortgagor to pay the mortgagee’s costs, charges and expenses, so they cannot be recovered from the mortgagor personally, save where personal liability has arisen in the particular case. Nevertheless, those costs are rolled into the secured indebtedness and, as against the mortgagor and anyone with an interest in the equity of redemption, they are treated as part of the amount owing under the security and must be satisfied as a condition of redemption......

In this issue: Banking & Finance case round-up Acquisition finance Sustainable finance Real estate finance Sanctions Daily and weekly news alerts Useful information Banking & Finance case round-up Banking & Finance—August and September 2025 case round-up. For an outline of the cases we have flagged in Banking & Finance during August and September 2025, see News Analysis: Banking & Finance—August and September 2025 case round-up. Acquisition finance AFME issues European high yield and leveraged loan report for Q2 2025. The Association for Financial Markets in Europe (AFME) has released its European High Yield and Leveraged Loan Report for Q2 2025, offering an overview of issuance patterns and credit performance across the high yield and leveraged loan markets. See: LNB News 26/09/2025 35. Source: AFME Q2 2025 European High Yield and Leveraged Loan Report. Sustainable finance GFI and Climate Bonds unveil the Global Property Linked Finance Initiative. The Green Finance Institute (GFI) and the...

In this issue Key developments and horizon scanning Disputes and remedies Enforcing security and property insolvency Residential tenancies Trespass and adverse possession Rent and rates LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Key developments and horizon scanning Renters’ Rights Bill advances to Second Reading in Parliament. The Renters’ Rights Bill reached its Second Reading in the House of Commons on 9 October 2024. Prior to the debate, a Ministry of Housing, Communities and Local Government press release confirmed a statement from Deputy Prime Minister Angela Rayner and set out the provisions she would spotlight in her Commons speech. The Law Society’s President, Nick Emmerson, commented ahead of the sitting, noting that scrapping ‘no‑fault’ evictions is a pivotal move to strengthen tenant protections, while urging the government to balance those rights with landlords’ pathways...

'Handover' under an EPC contract The notion of ‘handover’ within an EPC contract is of central importance. It identifies the moment when the EPC contractor’s primary obligations conclude and when the contractor’s potential liability for delay damages falls away. It likewise marks the point at which the employer assumes possession of (and typically responsibility for) the site and, in many instances, when the facility can begin commercial operation. Closely connected to handover are the processes of testing and commissioning. Whether such steps are mandated under an EPC agreement will depend heavily on the character of the facility being delivered. Where the facility comprises infrastructure, such as a road or a bridge, detailed testing and commissioning provisions are less likely to be necessary. By contrast, where the works include complex mechanical and electrical systems, testing and commissioning become essential. For power plants and intricate assets such as hospitals, these concepts are therefore of particular consequence. In truth, the more innovative and advanced the machinery or plant, the greater the need...

This Practice Note: provides a synopsis of the three principal forms of fund finance: capital call facilities (often referred to as equity bridge facilities) net asset value (NAV) (or asset backed) facilities hybrid facilities examines green and sustainability-linked finance, together with some types of fund-related finance, GP/Manager facilities and co-invest facilities sets out key security and documentary considerations, including financial covenants, representations, undertakings, events of default and prepayment events The capital call facility market is well-established and largely standardised, though approaches to assessing investor creditworthiness and differences driven by varied fund structures can diverge. By contrast, NAV facilities and hybrid facilities are highly flexible, taking multiple forms with differing security packages and covenant frameworks. Much of this Practice Note proceeds on the basis that lending is made to a typical private equity fund structured as a limited partnership registered under the Limited Partnerships Act 1907 (LPA 1907), including Private...

Business angels A business angel, sometimes called an angel investor, is a wealthy individual who backs young, fast-growing private ventures with minimal or no trading record, acting solo or within a collective such as a network or syndicate. Angels bridge the equity funding gap that sits between start-up and seed money (often provided by founders and ‘family and friends’) and institutional venture capital. Angels can act independently or join networks and syndicates when making investments collectively too. This form of backing targets early-stage, high-growth opportunities where operating histories are limited. Companies seeking angel finance generally require between £10,000 and £500,000 (and at times considerably more), yet conventional funding is frequently unavailable. Banks typically insist on significant assets as security, and venture capital houses, though targeting high-growth firms, deploy larger sums in third or later rounds. For more detail on investment types and investor categories in a private equity setting, consult Practice Note: Private equity investment—firms and funds. A key benefit of securing an angel is that they contribute more...