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Bridging loan


A temporary loan made to 'bridge' the gap between receipt of funds from the buyer and handing them over to the seller. It is particularly common in house or property purchase, where a bank may lend, in the short term, the monies needed by the purchaser to complete the transaction before the main source of funds arrives. e.g. while waiting for the completion of negotiations with a Building Society.

Reference: The Penguin Business Dictionary, 3rd edt.