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Define bridge financing.

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Define bridge financing.

Posted by D M 7 years, 11 months ago

CBSE > Class 12 > Business Studies

1 answers

Mohit Sharma 7 years, 11 months ago

Bridge financing is an interim financing option used by companies and other entities to solidify their short-term position until a long-term financing option can be arranged. Bridge financing normally comes from an investment bank or venture capital firm in the form of a loan or equity investment. This type of financing only occurs when a company's runway is shorter than its future financing options, and it needs to remain solvent in order to obtain such long-term financing.

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