Bridge Financing
Short-term capital that funds a defined gap between today and a known future event, such as a refinance, a contract close, a sale, or seasonal collection.
Defined exit, defined purpose
Properly structured bridge capital has a documented exit. It is not a substitute for long-term financing. It is a tool that funds a specific window between today and a measurable future event.
Without a real exit, a bridge becomes a stack of short-term obligations and an operating problem. With one, it is one of the more efficient tools in the structure.
Typical exits
Common exits include refinance into a senior facility, monetization of a receivable or contract, sale of a defined asset, completion of a project that triggers collection, or close of a transaction already in diligence.
Related Entries