What is Bridge Loan?
A definition of Bridge Loan
“A bridge loan is a short-term loan used to bridge the gap between financial obligations and future financing often repaid when permanent financing becomes available.”

Business Glossary > What is Bridge Loan?
Examples of Bridge Loan in a Sentence:
The company secured a bridge loan to cover expenses until their funding round closed.
A bridge loan can provide temporary financial assistance to real estate developers.
Homebuyers sometimes use a bridge loan to buy a new property before selling the old one.
Why is Bridge Loan Important in Business?
A bridge loan is crucial for businesses or individuals who need immediate funds to meet short-term obligations. It ensures flexibility in managing cash flow, especially during transitional phases such as mergers or acquisitions.
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Associated Terms
Here are some associated business terms and synonyms for “Bridge Loan”:
- Interim Financing
- Gap Financing
- Swing Loan
Real Estate Bridge Loan
A real estate development company took out a bridge loan to purchase land. This allowed them to start construction immediately while awaiting long-term financing. Such loans are significant in competitive real estate markets where timing is crucial.
Final Notes on Bridge Loan
When considering a bridge loan, take into account the interest rates, repayment terms, and loan-to-value ratios. It’s essential to have a clear exit strategy to repay the loan once the planned long-term financing arrangement is secured.
This has been a definition of Bridge Loan meaning.
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