Also known as “interim financing”, “gap financing” or a “swing loan”. A bridge loan is 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.

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 flexible.

This website uses cookies. We use cookies to provide social media features and to analyse our traffic.
You consent to our cookies if you continue to use our website. Read our cookie policy. I understand