Bridge Loan
A bridge loan (also called a swing loan) is a loan taken out for a very short period of time in order to finance a project. Bridge loans are often used in real estate to save a property from foreclosure or to close on a property quickly. Bridge loans are a means of expediting business transactions.
If a business wants a particular project accomplished quickly and a bank loan will take several months to go through, a bridge loan for a portion of the project's funding can be taken out in the meantime, to get the project underway immediately. A bridge loan is similar to a hard-money loan in its structure, though not necessarily in its uses.
While a bridge loan is used to move a business forward and mitigate delays, a hard-money loan is often used as emergency funds for the purpose of saving a failing business or property. Because they are determined by the real estate market, rather than the Bank Rate, both bridge loans and hard-money loans typically have a higher interest rate than regular bank loans, ranging between 10 and 16 percent. The length of a bridge loan can range anywhere from two or three weeks to two or three years.
Bridge loans are easy to find and obtain at iBank.com. Registering with iBank.com allows the borrower to connect with all different lenders and work with the lenders to find a bridge loan that best meets the needs of their particular project.
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