Taylor put his signature on the paperwork for his temporary transfer to Colchester this Friday evening and is now in line to make his U's debut in their home match with Crawley Town this Saturday.
The thirty-one year old had initially been travelling down with City for their away match at Gillingham but, after learning of the move, the centre half made the diversion to Colchester when Phil Parkinson's men stopped off to train at Charlton Athletic's training ground.
Taylor, along with young QPR defender Jamie Sendles-White, has been drafted in by U's boss Joe Dunne this Friday following a number of recent defensive injury problems for Colchester.
The U's are also without the suspended Daniel Pappoe following the defender's straight red card for a fierce tackle on Mark Yeates in the closing stages of City's encounter with Colchester last weekend.
After signing for the Bantams barely days before their season opener at Bristol City, Taylor has been restricted to just two starting appearances in the cups - one against Huddersfield Town (Capital One Cup) and the other against Hartlepool United (Johnstone's Paint Trophy).
Given City's competitive start to life back in League 1, Taylor's only league action for Parkinson's side so far came when the former Charlton man replaced Luke Oliver in the closing stages of the 4-0 home win over Brentford earlier this month.
With Taylor therefore lacking recent match practice on top of his virtually non-existent pre-season training period following his departure from Charlton at the end of last season, Bantams boss Parkinson is quick to acknowledge that the defender's Colchester loan move should do him the power of good.
Parkinson said: "Colchester have a few defensive problems and they came to us to see if they could take Matt.
"Matt obviously hasn't had the benefit of a pre-season this summer and he really needs a run of games under his belt to get his match sharpness back.
"We cannot offer him that here at the moment so the Colchester move is one that should work for all parties concerned.
"I feel this loan period can benefit both Matt and ourselves."
The deal is subject to Colchester receiving the relevant clearances from the Football Association and the Football League.