The definition of a bridge loan is a short-term loan to provide financing for a specific activity.
An example of a bridge loan is a loan taken out by a developer to pay for land and building materials while a house is being built and sold on the land.
- a short-term loan that provides interim financing for the purchase of new property until the old property can be sold
- a short-term loan used to finance a corporate takeover that is often repaid by selling assets of the acquired company
A short-term loan meant to provide or extend financing until a more permanent arrangement is made. Also called swing loan.
bridge loan - Legal Definition
Short-term loan to cover excessive or concurrent obligations, as in the case of a loan to cover two separate mortgages until borrower is able to sell one home.