Bridge Loan Meaning

Bridge loan as the name suggests is a type of loan which bridges the gap for a borrower and gives him or her more time to arrange for the cash in order to repay the loan or meet his or her current obligations. It can be better understood with the help of an example suppose you are in a college and its 25th of a month, now you need urgently $200 but your pocket money will come only on 1st of next month, than in that case you would borrow $200 from your friend and repay it next month when you receive your pocket money.

Big companies and individuals in real life do the same as in the above example, the only difference being they take it from the banks or financial institutions which charges interest on such loans and the amount is quite large and not as small as in the above example.

0 comments… add one

Leave a Comment


Related pages


carriage inwardsadvantages of fifo methodunearned service revenue journal entrydrawbacks of ratio analysisadvantages of decentralisationcost oriented pricingadvantages and disadvantages of mergers and takeoverscharacteristic of monopolistic competitionadvantages and disadvantages of m&aadvantages and limitations of marginal costingmonopolistic competition definition and examplesadvantages activity based costingideal debt ratioadvantages and disadvantages of social media advertisinginfosys kpopricing strategies advantages and disadvantageswhat is an autocratic leaderprepaid expenses journal entry exampleadvantages of audit programmehorizontal mergers examplesoligopoly and monopolywhat are examples of inferior goodswhat is skimming pricingdifference between cartage and freightimplication of capmexamples monopolistic competition companiesmeaning of debentures in hindidefine prestige pricingsocialist economy disadvantagesskimming examplescompetitive advantages and disadvantageswhat is the law of diminishing returns in economicsadvantages and disadvantages of a joint venturejoint venture advantages and disadvantagesmateriality conventiondividend wikipediadirect quote exchange ratecash reserve ratio calculationexample of market skimmingdefinition of redeemable preference sharestraditional economy meaningunqualified report auditintraday transactioncharacteristics of socialist economyhow crr is calculateddiversifiable risk examplebackward integration strategy exampleswhat does cross cheque meanssystematic risk and unsystematic risk definitionhow to record unearned revenue journal entryadvantages of carbon tradinggold bullion standard definitionexplain traditional economydefine law of diminishing marginal utilitydurable goods definition economicsmeaning of fluctuate in hindinon convertible preference sharesdefinition of a traditional economyslr crrslr & crradvantages of autocratic leadershipmixed economy tagalogslr crrautocratic leadership styleformula for degree of operating leveragepenetration pricing examples productsadvantages and disadvantages of natural resourcestypes of crossing of chequeadvantages and disadvantages of capital budgeting techniquesmarket skimming examplesfeatures of debenturesdisadvantages of socialismintraday tradermateriality concept in accountingconglomerate acquisition