Bridge loan is a financing method to solve the problem of enterprise's capital turnover quickly, with short term and high interest, but the next payment will be paid back quickly. If you need money badly and can't get a loan, this method is tantamount to giving timely help, so many enterprises will choose this financing method. Many enterprises are facing financing difficulties this year. Today, I will introduce an example of bridge loan, so that everyone can clearly understand how bridge loan works.

First of all, briefly introduce bridge loan.

Let's first understand the meaning of bridge loan, whose English name is Bridgeloan. Literally, it is to use a sum of money to bridge the bridge. Suppose institution A has obtained the loan project, but it is unable to digest it by itself, so it finds institution B and asks it to release funds for short-term emergency. When organization A has funds, organization B will quit. This process is short, but the interest is high, so it is not often used.

Second, the example of bridge loan.

Since leaving his job, Xiao Wang has started his own business and started a company specializing in some of the most popular cosmetics and clothes for online celebrities. In order to start a company, he also borrowed 3 million from the bank. However, during his pioneering period, he will inevitably encounter some setbacks, sometimes his sales are not good and his income is not ideal. However, when the bank loan was due, he had to pay it back. Xiao Wang's capital turnover was a little difficult, so he tried to borrow from another bank for emergency. However, it takes some time for the bank loan review. In this short period of ten days and a half months, the last bank loan will be repaid soon, so Xiao Wang went to a close friend and asked to borrow 3 million yuan to cross the bridge, 10 day to repay. When my friend saw that the interest rate was so high, he was immediately moved, so he lent Xiao Wang 3 million. Xiao Wang immediately repaid the previous bank loan until the second bank loan was successful.

The above is a brief introduction of bridge loan's principle. Real life is not that simple. Generally speaking, policy banks such as CDB, Exim Bank and Agricultural Development Bank will apply to commercial banks for bridge loan. The shorter the term, the higher the interest.