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

For startups, 'bridge loan financing' is a critical tool for sustaining operations before the next funding round. A startup CEO might state, 'We're exploring bridge loan financing options to extend our runway.'

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?

Real Estate

Scenario:

You've found a great new house, but haven't sold your old one yet. We need to find a solution.

Response:

Should I consider acquiring bridge-loan-financing to secure this new house while waiting for the sale of my old one?