Bridge Loan

Business, Legal & Accounting Glossary

Definition: Bridge Loan


Bridge Loan


Full Definition of Bridge Loan


A bridge loan is a temporary source of financing intended to last only until more permanent financial arrangements can be made. A bridge loan is usually for a year or less, often much less. The bridge loan is very common in two arenas, start-up finance and real estate. A start-up anticipating receipt of venture capital might seek a bridge loan from the VC partner(s) to meet operating needs until the deal closes. In this case, only the venture backers would risk making the bridge loan. In real estate, a bridge loan is easier to obtain because it will generally be secured by title to property. A common bridge loan scenario for the individual homeowner is when a buyer wants to purchase a new property, but cannot qualify for a new mortgage because of an existing mortgage. If the current home is not yet on the market, a bridge loan is a last resort financing option. Once the existing home is sold, the buyer can qualify for a mortgage and repay the bridge loan.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/bridge-loan/
Modern Language Association (MLA):
Bridge Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/bridge-loan/.
Chicago Manual of Style (CMS):
Bridge Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/bridge-loan/ (accessed: March 29, 2024).
American Psychological Association (APA):
Bridge Loan. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/bridge-loan/

Definition Sources


Definitions for Bridge Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February, 2020 | 0 Views.