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  • Writer's pictureEmpower Funding

What Is The Difference Between Bridging Finance And A Personal Loan?

That is the question.

And this is one of our most commonly asked questions!

See, when you go to some random person like a loan shark, or the guy down the street, or even the bank, and they give you money to use in life and you pay them back over a period of time... that is a personal loan.

You take an amount of money, let's say R100,000...

And now you pay back three thousand rand a month over 3-5 years.

That is different to bridging finance!


Bridging Finance is when you are getting a big chunk of money in the next little bit of time (about 3 months in the property industry we work in), and you want a small portion of it now.

Bridging finance is technically not even a loan!

A loan is when you don't have this huge chunk of money coming.

Bridging is when you do.

A loan is when you pay back little bits over a long time, usually.

Bridging is when you pay back the full amount at once after a short time.

We do Bridging Finance in the property industry.

You've sold a property.

You're getting a big chunk of money from that sale, and instead of waiting for 3 months, we give you a small portion of it now.

You get your money.

You don't pay us back over months or years... When the property transfers into the buyer's name, there's a big chunk that gets paid out to whoever bridged, and we also get repaid, plus our fees.

So it's not a personal loan where you pay it off over a period of time and there's not big amount coming in...

Bridging Finance has a major amount coming in to you, and you just want some of it now.

I hope that kind of clarifies it and explains the difference to you a bit more.

And if you do need bridging finance in the property industry, get in touch with us so we can get you your money... Now!

Thank you, and check out the video below for more.

Gal Ezra,

Managing Director,

Empower Funding



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