A short-term financing solution designed to “bridge” the gap between immediate needs and future funding. This type of loan provides temporary capital, often secured by existing assets, to facilitate transactions that require rapid execution. A common example involves using this financing to purchase a new property while awaiting the sale of a current residence.
The value of this financial instrument lies in its ability to unlock opportunities otherwise constrained by time or liquidity. Historically, it has enabled individuals and businesses to capitalize on emergent market conditions, complete time-sensitive real estate deals, or manage transitional periods without disrupting ongoing operations. Its flexibility makes it a valuable tool in various financial strategies.