What is meant by bridge financing?
What is meant by bridge financing?
Bridge financing is a special type of loan typically taken out to cover the period until another form of financing begins. This may be necessary when expected funds, such as those from a building savings contract, have not yet been received. In other words, it is a financial bridging solution designed to temporarily address a liquidity gap. The repayment of this loan is usually made in a single installment. In some cases, however, the repayment can also be integrated into the subsequent financing model. This provides the borrower with a degree of flexibility in managing their finances.