Bridge Loan
Private Credit glossary · Private Credit Fundamentals
Definition
Short-term financing intended to be replaced by permanent capital.
Bridge Loan in plain English
A bridge loan is exactly what it sounds like: a temporary span that carries you from where you are now to where your real money will come from later. A company might grab one to buy a building today, fully expecting to pay it off in a few months once a bigger, permanent loan or a stock sale closes. It's the same idea as putting a deposit on a new apartment with a short-term loan because you know your current place sells next month — useful, fast, but meant to be replaced quickly (and usually pricier because of that convenience).
Practice Bridge Loan
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