Hard money conference in Las Vegas


Bridge Loan


Bridge loans are loans intended to be used for a short period of time between the initial requirement for funds and a permanent, usually less costly, financial solution.
Bridge loans are typically funded by collateralized real estate. There are typically very few limitations on the uses of funds for a bridge loan, although lenders will review the use to insure that payback can be met.

Example:

A company is doing a round of equity financing that is expecting to close in six months. A bridge loan could be used to secure working capital until the round of funding goes through. In the case of an individual, bridge loans are common in the real estate market. As there can often be a time lag between the sale of one property and the purchase of another, a bridge loan allows a homeowner more flexibility.

 


 

Useful Links