interim financing

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Interim financing

A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing.

Interim Financing

A short-term loan intended to maintain a company's operations while it makes arrangements for longer-term financing. For example, a start-up may take out a loan for a few months while it prepares its initial public offering.

interim financing

The financing that supports a transaction until permanent financing can be arranged.

interim financing

A short-term loan arranged in order to buy time until something changes. At the end of the original construction loan period, a developer may wish to seek interim financing rather than permanent financing because of an expectation that interest rates will fall in the future, or because the developer's plans have changed and the property will be sold rather than retained. The problem with permanent financing and many development projects is the existence of very large prepayment penalties—one cannot simply refinance when interest rates go down or simply pay off the loan when there is a sale. A borrower may also seek interim financing because the borrower's financial strength, or that of income-producing property serving as collateral, is not currently sufficient to justify attractive financing terms.

References in periodicals archive ?
com is designed to provide banks and non-bank lenders information on how SBA 504 interim loans are best used and how to best secure these loans.
4 million, net interest income on interim loans increased 223% to $1.
Walker & Dunlop earned almost $200,000 in net interest income during the second quarter on the interim loans we have originated using our own balance sheet and warehouse lines from banks," commented Walker & Dunlop Chairman and CEO, Willy Walker.
More recently, JHP Realty Advisors have arranged several complex transactions that included forward commitments, earn-outs on existing properties, new construction and renovation projects, and interim loans suitable for repositioned properties.
These interim loans provide time for the communities to stabilize and qualify for long-term fixed rate financing.
HealthSouth used a portion of the proceeds of the loans under the senior credit facility, the proceeds of the interim loans and the proceeds of $400 million from its previously announced issuance and sale of 400,000 shares of 6.
KeyBank Real Estate Capital, the nation's fifth largest commercial real estate lender provides approximately $10 billion annually in construction and interim loans, permanent mortgage finance, equity capital and investment banking nationwide through offices located in 29 major U.
Chisholm, who has been in the industry for more than a decade, will be responsible for originating mortgage products in the New York office, including capital markets, general account, Fannie Mae, mezzanine and interim loans.
Net proceeds to the Company from the concurrent offerings will be used to repay interim loans incurred in connection with the acquisition of Svianed, as well as to fund capital expenditures for the expansion of the Company's network and for acquisitions, working capital and other general corporate purposes.
for $150 million in interim loans in connection with Key's cash tender offer for all outstanding shares of common stock of Dawson Production Services, Inc.
Mercantile is a wholly-owned subsidiary of IBERIABANK (IBKC) and has been a primary source of SBA 504 loans and interim loans nationwide since 2003.
However, there appears to be a lot of interest in government funding programs and interim loans that bridge to more attractive, recession-proof FHA-insured government loans," he said.

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