Bridging loans are a type of short-term financing that is commonly used to bridge the gap between two financial transactions. They are often used by individuals or businesses to finance the purchase of a new property while waiting for the sale of an existing one.
Definitions
A bridging loan is a type of short-term loan that is used to bridge the gap between two financial transactions. It is typically used to finance the purchase of a new property while waiting for the sale of an existing one. The loan is secured against the property being purchased and is typically repaid within a few months.
Origin
The concept of bridging loans has been around for centuries. In the past, they were primarily used by wealthy individuals to finance the purchase of new properties while waiting for the sale of existing ones. Today, they are used by a wide range of individuals and businesses to finance a variety of transactions.
Meaning in different dictionaries
According to the Oxford English Dictionary, a bridging loan is “a short-term loan used to bridge the gap between two financial transactions, typically the purchase of a new property and the sale of an existing one.” Merriam-Webster defines it as “a loan used to provide temporary financing until more permanent financing can be arranged.”
Associations
Bridging loans are often associated with property transactions, particularly in the real estate industry. They are commonly used by individuals and businesses to finance the purchase of a new property while waiting for the sale of an existing one. They are also associated with short-term financing and are typically repaid within a few months.
Synonyms
Synonyms for bridging loan include bridge loan, swing loan, and interim financing.
Antonyms
Antonyms for bridging loan may include long-term financing, permanent financing, and fixed-rate loans.
The same root words
There are no specific root words associated with bridging loans, but they are related to other types of short-term financing, such as payday loans and cash advances.
Example Sentences
- John used a bridging loan to finance the purchase of his new home while waiting for the sale of his old one.
- The real estate developer secured a bridging loan to finance the construction of a new property while waiting for funding from investors.
- The small business owner used a bridging loan to cover unexpected expenses while waiting for a new round of funding.