gap financing

gap financing definition - business

gap financing

Temporary borrowing to provide needed funds between the termination of one loan and the beginning of permanent financing. For example, a developer might obtain gap financing to provide funds for the period between the end of a construction loan and when permanent financing becomes available.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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