Web hosting Glossary
Definitions of bridge financing:
- Mezzanine financing for a company expecting to go public within six months to a year.
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- A loan made for a short term, to "bridge" (or cover) the time gap between completing the purchase of one property and finalizing arrangements to pay for it. The need for this type of financing often results from mismatched closing dates. More information
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- an interim loan made for a short period during which the borrower is arranging long-term financing.
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- A form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.
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- Also known as a "swing loan", a loan used to fill a gap in financing, often between the purchase of a new home and the sale of the old one. If the purchase closes before the sale, the home owner needs to borrow enough money to pay for the new house for the period of time before the equity in his old house comes available as a result of the completion of the sale.
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- Money borrowed against a homeowner's equity in a property (usually for a short term) to help finance the purchase of another property or to make improvements to a property being sold.
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- Interim financing to bridge the time gap between the closing date on the purchase of the new home and the closing date on the sale of the current home.
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- As the name implies, bridge financing is intended as temporary funding that eventually will be replaced with permanent capital. In some cases, lenders will provide buyout firms and venture capital firms with bridge loans so that they can begin investing, before they have closed on capital for their funds. Likewise, a buyout or venture firm might provide a portfolio company with temporary financing until permanent financing is in place.
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- Interim or temporary financing.
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- A loan required to provide the funds needed for the closing of the property you have purchased to the time of the later closing of the property you have sold.
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- Short term loan, usually with a higher interest rate, bridging the gap between the payoff of an exisiting mortgage, and the funding of a new loan.
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- interim financing to solidify a position
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- Financial means that are provided for the company to prepare the IPO especially with the aim to improve the capital ratio.
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- A type of loan, usually at fluctuating interest rates, that takes the form of renewable overdrafts or discounting facilities. It is used as a continuing source of funds until the borrower obtains medium- or long-term financing to replace it.
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