Bridge loan means that after financial institution A got the loan project, it was unable to operate because of insufficient funds at that time, and it consulted financial institution B to help allocate funds. After the funds of financial institution A are in place, B will withdraw from bridge loan.
For B, this kind of loan is usually called bridge loan. In China, policy banks such as CDB, Exim Bank and Agricultural Development Bank play the role of financial institution A, while commercial banks play the role of financial institution B. ..
The role of bridging loans:
Bridge loan itself is a kind of short-term financing, the term varies from a few days to several months, and the longest is no more than half a year. It is a means to connect short-term funds with long-term funds. It usually appears in foreclosure or repayment of bank loans.
If we want to sell the house we bought with the loan, some users will pay the house money in bridge loan first, and then pay it back to bridge loan after they get it.
In addition, when we borrow money from a bank, it is generally stipulated that the principal must be repaid once a year, so some people ask for a bridge loan to repay the bank's money before lending it out.