Bridge funds are the financing of short-term funds, and the term is generally not more than 6 months. Bridge fund is a kind of fund connected with long-term fund. Its existence is short-term financing for enterprises or individuals to realize the docking with long-term funds.

Advance payment mostly occurs in engineering projects and real estate business. In the construction of engineering projects, contractors often need advance payment (prepayment). The term of prepayment business is generally short-term, and the longest is 1 year.

2. Different repayment methods:

Generally, the repayment method of prepayment is to pay interest on a monthly basis and repay the principal at one time. However, because bridge loan does not occupy funds for a long time, it is only a temporary need, and it needs to repay the principal and interest once it expires. Because of the importance of bridge loan, it usually gives the fund providers a fairly high return.

3. The relationships involved are different:

Generally speaking, the advance funds involve four parties: the borrower, the original personal loan funds, the new loan funds and the bridge funds.

Bridge loan generally involves three parties: the borrower, the loan partner and the loan sponsor.

Legal Basis: Interpretation of the Supreme People's Court on Applicable Legal Issues in the Trial of Disputes over Construction Contracts Article 7 If an unqualified unit or individual signs a construction contract in the name of a qualified construction enterprise, and the employer requests the lender and the borrower to bear joint and several liability for the losses caused by the unqualified construction project, the people's court shall support it.