definition of a bridge loan

Bridge Loan A loan for a short-term period, usually two weeks to three years, until long-term financing can be arranged or an obligation is removed. Interest rates are relatively high, often 12-15%. Bridge loans are used to satisfy working capital needs; for example, if a company is arranging for an IPO.

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Between when your bridging loan is advanced until you sell your existing home, most lenders capitalise interest-only repayments on the peak debt which means.

Bridge loans are used to satisfy working capital needs; for example, if a company is arranging for an IPO or a bond issue in the coming months, but needs capital before then, it may take out a bridge loan. In doing so, it will plan to pay back the bridge loan with the money raised in the longer-term financing.

Bridge Loan Law and Legal Definition A bridge loan is a short term interim loan used until securing a permanent financing or removing an existing obligation. It is a loan to bridge the gap between the termination of one mortgage and the beginning of another.

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A bridge loan is money that a bank lends you for a short time, for example so that you can buy a new house before you have sold the one you already own. Mexico also will get some new lending, including a new US bridge loan of some $2 billion to tide it over until the other credits are made available.

What Is A Bridge Loan? “A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation.

Bridge Loan Definition. Bridge loans, also commonly called "swing loans" or "gap financing," provide short-term financing to "bridge" the gap while an individual or a company secures more permanent financing. These short-term loans offer immediate cash flow for users who need to meet obligations while they set up their long-term.

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Define bridge loan. bridge loan synonyms, bridge loan pronunciation, bridge loan translation, English dictionary definition of bridge loan. n. A short-term loan meant to provide or extend financing until a more permanent arrangement is made.

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