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Financial food for thought
Financial emergencies are almost always unpredictable. These can strike anyone at any time without warning. The situation could be even worse if they strike and you don’t have sufficient personal finance to take care of the emergency. Thankfully, with the availability of short-term loans, you can manage the situation relatively quick.
We agree that the need for credit can arise any time. It could be for reasons such as layoffs from employment, medical emergencies, need to travel or to buy expensive gadgets such as Televisions, Mobiles, etc. The reasons can be endless. Similarly, the duration for which the loan is required can also be varied.
What is bridge loanBridge loan is a type of gap financing where the borrower can get access to liquid short-term loans for meeting short-term cash requirements before getting a more permanent source of funding. As the name suggests, bridge loans help in bridging the gap between short-term cash requirements and long-term loans. It is called a bridge loan because it serves as a bridge between two periods of funding, the second one being the more permanent source of funding.
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