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bridge loan |
Also found in: Dictionary/thesaurus, Wikipedia, Hutchinson | 0.01 sec. |
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 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 A short-term loan intended to bridge the gap between other transactions. (1) Temporary financing obtained at the end of a construction loan period but before permanent financing can be arranged. (2) A loan obtained by a home buyer when the equity from an existing home is necessary to provide the down payment for a new home,but the buyer has been unable to sell his or her old home as of that time (frequently offered by employers who transfer employees to new cities). Bridge Loan A short-term loan,usually from a bank,that “bridges”the period between the closing of a home purchase and the closing of a home sale. To qualify for a bridge loan, the borrower must have a contract to sell the existing house. This is the same as a “swing loan.” See Housing Investment/Buying the Next Home Before the Existing One How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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This report provides an overview of the bridging loan sector in the UK, covering market sizing, issues, competitive trends and includes a 5-year forecast in terms of gross advances. As a result, by June 2002 it was able to fully repay the EUR1-billion bridging loan taken out to finance the Seagram acquisition. Further, the new company has completed a $1,200,000 convertible bridging loan with Cornell Capital LLP. |
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