// definition
Bridge loan
Temporary borrowing ahead of an expected funding source
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Short definition
A short-term loan used to meet a funding need before an expected resource becomes available, such as longer-term financing or proceeds from an asset sale. The later resource still has to materialise. The facility limit, cumulative drawdowns and principal outstanding describe different stages of the borrowing and must not be added together.
risk atlas
Knowledge map
Intuition
The loan advances the funds; the resource intended to repay it must subsequently materialise.
Related analyses
Primary sources
- BDC, bridge capitalTemporary funding ahead of a more permanent resource; bridge financing can take the form of debt.
- SoftBank Group, Early Repayment of Bridge Loans, 9 September 2026Borrower disclosure distinguishing the facility limit, cumulative drawdowns and balance before repayment.