Bridge Loan
Content
Definition
Bridge Loan is a short-term financing option used by companies to cover immediate expenses until longer-term financing is secured.
Usage and Context
Bridge loans are common in real estate and business deals. They help companies pay for things they need now while they wait for more money to come in later.
Frequently asked questions
- What is a bridge loan used for? A bridge loan helps cover costs for a short time. It`s used until a company gets longer-term funding.
- What is a bridge debt? Bridge debt is a temporary loan. It supports a company`s immediate financial needs until a more permanent solution is found.
- Why do startups use convertible notes? Startups use convertible notes for quick cash. These notes can later turn into shares of the company.
Benefits
Bridge loans provide fast cash. This helps businesses keep going without stopping or waiting for longer-term loans.
Conclusion
Bridge loans offer a quick fix for immediate financial needs. They let businesses move forward by providing short-term funds.
