bridge financing
Interim capital arrangement
Bridge financing is a short-term loan that covers immediate needs until permanent funding is secured.
Companies use it to maintain operations while awaiting a larger investment or acquisition; homebuyers use it to purchase a new house before selling their current one: We needed bridge financing to close on the property.
The metaphor is of a bridge spanning a gap between two points.
- short term loanBorrowed funds, quick payback
- line of creditPreapproved borrowing capacity
- promissory noteWritten debt obligation
- revolving creditReusable loan with limit
- factoringBreaking into multiplicative parts
home equity loan · overdraft protection · working capital · seed funding · venture capital