A bridge loan is a short-term loan used to start or complete a project until the business has secured permanent financing or removes an existing obligation. It allows the borrower to meet current obligations by providing immediate cash flow. These loans are generally short-term, up to one year, and generally have relatively higher interest rates than traditional financing, and are usually backed by some form of collateral, such as real estate or inventory.
These types of loans are also called bridge financing or a bridging loan.
KEY TAKEAWAYS
- A bridge loan is short-term financing used until a person or company secures permanent financing or removes an existing obligation.
- Bridge loans are short-term, typically up to one year.
- These types of loans are generally used in real estate.
We also offer alternative short-term collateralize loans which can close in 5 days or less.
