Gap Financing

Bridge Loan - A Bridge Loan is a short-term financing option used to bridge the gap between the purchase of a new asset and the sale of an existing one. Typically utilized in real estate transactions, bridge loans provide immediate cash flow for the borrower until permanent financing can be arranged or the existing asset is sold.

Class Information

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Identification

Label (rdfs)
Bridge Loan
Preferred Label
Gap Financing
Alternative Labels
Interim Loan, Short-Term Financing
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Definition and Examples

Definition
A Bridge Loan is a short-term financing option used to bridge the gap between the purchase of a new asset and the sale of an existing one. Typically utilized in real estate transactions, bridge loans provide immediate cash flow for the borrower until permanent financing can be arranged or the existing asset is sold.
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Additional Information

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Deprecated
False

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