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swing loan

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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.

swing loan

swing loan

A short-term loan that allows homeowners to buy a new home even though their old one has not yet sold.


Swing Loan

Same as Bridge Loan.



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If there is sufficient equity, the swing loan can be structured to capitalize the interest for a period of time.
Terms like swing loans with balloon payments and seller participation became part of the real estate deal-making lexicon.
The credit facility provides that up to $25 million is available for letters of credit and there is a $15 million swing loan subfacility.
 
 
 
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