bridge-loan-financing

Vocabulary Word

Definition

Bridge-loan-financing refers to a short-term loan that a person or company uses until they can get permanent financing. It's like a temporary bridge that helps you get from one side (urgent need for cash) to the other (long-term financing).

Examples in Different Contexts

In finance, 'bridge loan financing' helps businesses or individuals manage short-term liquidity needs. A financial analyst might explain, 'Bridge loan financing can provide the necessary capital until long-term financing is secured.'

Practice Scenarios

Business

Scenario:

Our company's cash flow is shrinking, and we're waiting for the profits from the recent investments.

Response:

Would it be better to consider bridge-loan-financing to help cover our immediate cash needs?

Startup

Scenario:

The startup burned through their last round of funding faster than expected. We need to find a way to keep them going before the next round.

Response:

Isn't bridge-loan-financing a possible approach to get us through to our next investment round?