when olayan america corp wanted to purchase the sony building in new york city in 2016 it took out a bridge loan from ing capital the short term loan was approved very quickly allowing olayan to seal the deal on the sony building with dispatch the loan helped to cover part of the cost of purchasing the building until olayan secured more permanent long term funding 4
bridge loans vs traditional loansbridge loans typically have a faster application approval and funding process than traditional loans however in exchange for the convenience these loans tend to have relatively short terms high interest rates and large origination fees generally borrowers accept these terms because they require fast convenient access to funds they are willing to pay high interest rates because they know the loan is short term and plan to pay it off quickly with low interest long term financing in addition most bridge loans don t have repayment penalties 