What is meant by Bridge Loan?

Bridge loan means temporary finance provided to the company to finish of the project after that the company needsto repay the loan.
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seelujangra

  • Jan 16th, 2008
 

Bridge loans are an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing which is expected to be paid back - generally within the range of 6 to 36 months - once the borrower obtains more permanent, lower cost financing. Bridge loans in corporate finance are sometimes called "gap financing", and used to cover the time between redemption of one bond issue and its replacement by a new issue. They can also be operating loans for periods between LOI and acquisition, or quiet period and IPO.

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cashflow

  • Jan 27th, 2008
 

A bridge loan is interim financing for an individual or business until permanent or the next stage of financing can be obtained.

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