swing loan

Related to swing loan: bridge 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.

swing loan

See bridge 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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References in periodicals archive ?

Swing loans are designed to take up to 75 percent of the equity out of a borrower's current house to enable him or her to buy a new home.

On purchase money transactions, the appraisal for the senior lien is generally sufficient, and requirements are minimized for swing loans.