Bridging finance is a short term loan that is used to bridge periods when expected An organisation's financial income from sales, donations, contracts and/or grants doesn’t arrive as original agreed or planned thereby providing immediate cashflow. Bridging Money which has to be returned to the lender usually with interest. Loans vary in size and in repayment terms can be used whilst waiting for a An unconditional or conditional gift or donation of money with no expectation of repayment. paid in arrears; whilst waiting for a contract payment or other forms of expected An organisation's financial income from sales, donations, contracts and/or grants . Bridging Money which has to be returned to the lender usually with interest. Loans vary in size and in repayment terms can have high A fee paid by a borrower of money to the lender as a form of compensation for the use of the money. Interest is not 'Profit'. Interest is paid to a lender, profit is paid to an owner. Interest is usually expressed as an annual % of the 'principal' or sum owed to the lender It is calculated as a % of the principal, over an agreed period of time. Interest Rates are market prices for loans determined by supply and demand. Interest is often calculated on a compound interest basis, where interest is earned on prior interest in addition to the principal sum borrowed. See also - Variable Interest & Fixed Interest and can be backed by some form of Used in reference to secured loans, this is where the creditor/lender has a claim on a particular part of the debtor/borrower assets in the event of default. This is contrasted with an unsecured loan, where the lender/creditor has no right to take over any particular asset of the debtor/borrower if payments are not made when due.