Bridging loans are commonly used in-between the buying and selling of property, to “bridge” the gap between the homebuyer’s new mortgage and the price of a new home, before selling his/her existing property.
In business terms, a bridging loan may be taken out to provide a company temporary working capital for operating payables, e.g. to cover the expense of staff salaries while the business is awaiting new funds from a recent sale to come through.