Bridge loan
A short-term loan used to cover a financing gap, typically 6-12 months. Common in real estate when buying a new home before selling the existing one, and for short-term business cash-flow needs.
Full definition
A bridge loan is a short-term financing tool designed to span a defined gap, usually 6-12 months. Real-estate bridge loans let homebuyers purchase a new property before their existing one sells. Business bridge loans cover temporary cash-flow gaps between an expected receivable and a current obligation. Bridge loans typically carry higher APRs than long-term financing because of the short repayment horizon and the lender's elevated risk. Most personal loans are not bridge loans; they have standard 2-7 year amortising terms.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Personal loanAn unsecured installment loan that can be used for almost any personal purpose. The most flexible mainstream U.S. consumer-loan product.
- Unsecured loanA loan that doesn't require collateral. The lender relies on your credit and income to underwrite. Most personal loans are unsecured.
- Secured loanA loan backed by collateral the lender can seize on default. Auto loans, mortgages, and HELOCs are secured. APRs are lower than for unsecured loans.
- HELOC (Home Equity Line of Credit)A revolving line of credit secured by your home equity. APRs are typically lower than personal loans, but the home is collateral.
- Credit unionA member-owned, not-for-profit financial cooperative. Often offers lower personal-loan APRs than banks for the same credit profile.
- Online lenderA lender that originates and services loans entirely online. Decisions in minutes; funding as fast as the next business day.
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