A bridge loan is short-term or interim financing for your business until permanent or another stage of financing can be obtained.

Bridge loans are usually taken out for short terms, from 1 year to three years, depending on the securing of a more traditional commercial loan, which is usually used to pay back the bridge loan.  Due to the increased risk, bridge loans usually have higher interest rates. The bridge loan lender may also require cross commercialization, and a lower loan-to-value ratio, but they are typically arranged with relatively little documentation.