What is a Bridge Loan?

A bridge loan is short-term with high-interest rates and is backed by some collateral or security. The collateral can be either real estate or inventory. It is often helpful to the user to be able to meet current liabilities till the person is able to arrange a permanent financing obligation. It is also known as gap financing, interim loan, swing loan etc. It is thus able to bridge the gap between the amount of finance needed and the amount of finance at hand.  Many corporations and persons can make use of bridge loans when needed.

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