Bridge Loan

A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short-term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.

Also known as "interim financing", "gap financing" or a "swing loan".

As the term implies, these loans "bridge the gap" between times when financing is needed. They are used by both corporations and individuals and can be customized for many different situations. For example, let's say that a company is doing a round of equity financing that is expecting to close in six months. A bridge loan could be used to secure working capital until the round of funding goes through. In the case of an individual, bridge loans are common in the real estate market. As there can often be a time lag between the sale of one property and the purchase of another, a bridge loan allows a homeowner more flexibility.


Investment dictionary. . 2012.

Look at other dictionaries:

  • bridge loan — see loan Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bridge loan …   Law dictionary

  • bridge loan — bridge′ loan n. ban a short term loan used for interim or emergency financing, as between selling a house and buying another Also called swing loan …   From formal English to slang

  • bridge loan — n. 1. a short term loan that provides interim financing for the purchase of new property until the old property can be sold 2. a short term loan used to finance a corporate takeover that is often repaid by selling assets of the acquired company …   English World dictionary

  • bridge loan — (izg. brȉdž lȏun) m DEFINICIJA bank. kredit za premošćivanje, ob. kredit banke kojim ona dužniku osigurava novčana sredstva za ostvarenje neke poslovne transakcije, a vraćanje kredita osigurano je od tog posla ETIMOLOGIJA engl …   Hrvatski jezični portal

  • Bridge loan — A bridge loan (also known in some applications as a swing loan) is a type of short term loan, typically taken out for a period of 2 weeks to 3 years [cite web| url=http://www.thisismoney.co.uk/help and advice/advice banks/article.html?in… …   Wikipedia

  • bridge loan — A short term loan to enable the borrower to purchase an asset where the loan is to be repaid from the proceeds of the sale of an asset being replaced by the asset just purchased. In consume loans bridge loans may be used to enable the cons8umer… …   Financial and business terms

  • bridge loan — A loan which is for short duration until more permanent financing is arranged; e.g., person might obtain a bridge loan to purchase real estate and build house before final mortgage financing or the sale of presently held assets can be… …   Black's law dictionary

  • bridge loan — A loan which is for short duration until more permanent financing is arranged; e.g., person might obtain a bridge loan to purchase real estate and build house before final mortgage financing or the sale of presently held assets can be… …   Black's law dictionary

  • bridge loan — noun : a short term loan used to finance an enterprise, investment, or government prior to obtaining other funds * * * 1. See under bridge financing. 2. See swing loan. * * * n. a sum of money lent by a bank to cover an interval between two… …   Useful english dictionary

  • Bridge Loan — Eine Brückenfinanzierung (engl. bridge financing oder bridge loan) ist eine oft von Banken gewährte Bereitstellung von Finanzmitteln zur Finanzierung einer Transaktion (z.B. für den Kauf eines Hauses oder Unternehmens), die vergleichsweise… …   Deutsch Wikipedia

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