bridging loan

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Related to bridging loans: Swing loan

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.

bridging loan

a form of short-term LOAN that is used by a borrower as a continuing source of funds to ‘bridge’ the period until the borrower obtains a medium or long-term loan to replace it. Bridging loans are used in particular in the housing market to finance the purchase of a new house while arranging long-term MORTGAGE finance and awaiting the proceeds from the sale of any existing property.

bridging loan

a form of short-term LOAN used by a borrower as a continuing source of funds to ‘bridge’ the period until the borrower obtains a medium- or long-term loan to replace it. Bridging loans are used in particular in the housing market to finance the purchase of a new house while arranging long-term MORTGAGE finance and awaiting the proceeds from the sale of any existing property.
References in periodicals archive ?
When considering all of the above, its hardly surprising that the bridging loans sector as a whole has been attracting so much more interest than ever before.
Bridging loans have the potential to be quicker, simpler and far more affordable than any comparable financial product from a mainstream lender.
Bridging loans are offered on the back of comprehensive and digestible information to ensure rational and beneficial decision making across both domestic and professional circles alike.
If you want to raise funds quickly on a commercial property already owned or for the purchase of a commercial property that you are looking to buy, then a commercial bridging loan could be the ideal solution for you.
What separates a bridging loan from a conventional financial product is two very important things.
Some people taking out short term bridging loans are doing so without looking at the long term and how the loan is going to be repaid.
Many watchdogs are concerned about the growth of bridging loans because if used incorrectly they can prove to be very expensive.
Information about the size of the bridging loan sector is limited but one thing that is clear is that the sector is small.
The bridging loan industry has often been associated with a poor image.
Undoubtedly, prices play an important role in the bridging loan market for differentiating one's products.
A bridging loan carries a number of characteristics