This section groups practical credit and lending entries about bridge, gap, and prefinancing. It keeps related loan, collateral, borrower, repayment, and debt-market concepts together instead of leaving them in an oversized parent bucket.
Use these entries as quick reference points before moving across the surrounding credit, lending, collateral, receivables, or debt-resolution sections.
In this section
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Bridge Loan: Definition, How It Works, and Examples
A comprehensive guide on bridge loans, including the definition, how they work, types, examples, and key considerations. Learn how bridge loans provide short-term financing to individuals and companies until permanent financing is secured.
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Gap Financing: Covering Funding Gaps
Gap Financing refers to a short-term loan used to cover an immediate funding requirement until long-term financing is secured.
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New Money: Long-Term Financing
New Money refers to additional long-term financing provided to a company or government through new issues or issues exceeding the amount of a maturing issue or refunded issues.
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Prefinancing: An Advance Payment Arrangement
Prefinancing is an arrangement in which a buyer finances the activities of a supplier by making an advance payment against delivery. Often used in fair trade policies, it supports suppliers in developing regions by providing upfront payments.