Bridge fund is a short-term financing with a term of six months, which is a fund connected with long-term funds. The purpose of providing bridge funds is to achieve the conditions of docking with long-term funds through the financing of bridge funds, and then replace bridge funds with long-term funds. Crossing the bridge is only a temporary state.

Extended data:

1. Capital bridge actually refers to capital lending between companies. Use borrowed funds to help the unit temporarily cut off the difficulties of funds.

2. In capital operation, when we want to redeem the assets with low mortgage rate and re-mortgage, we can get more loans; Or in project operation and mergers and acquisitions, you need to exchange small money for big money; Or you need to pay a deposit when making a loan; Or when dealing with the working capital of acceptance bills, you need to pay interest discount, commission and current payment ... At this time, you can use bridge funds for emergency. Its characteristics are as follows:

1. This is short-term funds, ranging from a few days to several months.

2. Because it takes a short time and is urgent, the interest rate is high. On some days, the interest rate is seven thousandths and the monthly interest rate is generally 3-9%.

3. To build a good bridge, that is, the follow-up funds must be reliable, and the reliability and operating procedures must be recognized by donors to ensure the safety of funds.

The relationship between interest and supply and demand fluctuates greatly.

References:

Bridge funds-Baidu Encyclopedia