Bridge Loan

-

A short term loan that is used until a person or company secures permanent financing or removes an obligation that is currently existing is called as a bridge loan. Bridge loans allow users to meet their current obligations by providing them with immediate cash flow. They are short-term loans that has relatively higher interest rates and are usually backed by a collateral like real estate or inventory.In UK, it is usually called as bridging loan, caveat loan or swing loan. They are typically more expensive than other conventional methods of financing. Also, they come with a higher rate of interest, points and other costs that are amortized over a shorter period, and various sweeteners like equity participation by lender in some loans. Bridge loans are arranged quickly in a short period of time with relatively less documentation.Bridge loans in real estate is used for quickly closing property purchases, to retrieve real estate from foreclosure or to take advantage of short-term opportunity to secure long-term financing.It is used in venture capital and other types of corporate finance for purposes like:
  • -          To inject small amounts of cash to carry out the functioning of a company so that it does not run out of cash between successive major private equity financings.

  • -        As a final debt financing to carry out the functioning of a company through immediate period before IPO or acquisition.

  • -          To carry out the functioning of distressed companies while searching for a favourable acquirer or large investor.
      About RCBS: The best Business (b schools) schools in Kerala, RCBS welcome you to grow your career into the next level. RCBS is popular as one of the best MBA Colleges in Kerala with AICTE and NBA accreditation which offers courses like MBA, MHRM, PGDM and International MBA. Grab your admission at one of the best b schools (business schools) in Kerala, RCBS. Visit website

Comments

Post a Comment

Popular posts from this blog

UNDERSTANDING THE DIFFERENCE PGDM VS MBA IN KERALA

-
Image
With the increasing number of job opportunities and rise of corporate culture as well as encouragement to startups, entrepreneurship in India, more and more individuals are opting for management studies. And coming to India, there is no shortage of institutes and universities offering postgraduate management programs. In fact, Kerala have close to 100+ management institutes offering a wide range of post graduation courses like PGDM, IMBA, MHRM etc. all under the same academic bracket – MBA in Kerala . However, the students often find themselves are opting two such courses, namely PGDM and MBA . But among these candidates, most of them are unsure about the difference in titles as well as content, leads to confusion regarding which course is better for career and why.  So let’s take look on this guide to get an idea, difference between the PGDM and MBA courses in Kerala India   Decoding the Terminology Even named as two, both these courses essentially train you m...
Read more

THE MOST IMPORTANT LESSONS FOR AN MBA GRADUATE

-
Image
Every MBA graduate realizes how much they have been able to change in the two years of course time. The most important thing that one can acquire are the abilities to adapt, interpret and learn. Furthermore one valued the skill of learning the simple recipe for learning. Here are the top most important lesson one can get: 1.    Increased level of confidence in decision making at critical points with even less information. 2.    To take the risk as a challenge 3.    Being able to execute the plans in a better manner 4.    Learning from mistakes and growing from every lesson learnt 5.    To be effective as a leader and a supporter 6.    Never to underestimate the power of networking at official or personal level 7.    Making use of every single opportunity and never taking things for granted Rajagiri Center for Business Studies Kerala  is o...
Read more

Credit Crunch

-
Image
An economic condition where investment capital is hard to secure is referred to as a credit crunch. Investors and banks become wary of lending funds to corporations and individuals which drives up the price of debt products for borrowers. It is often an extension of a recession and a credit crunch makes it almost impossible for companies to borrow as lenders are scared about instances like bankruptcies or defaults which could lead to high rates. It is also known as a credit squeeze or credit crisis and occurs independently of a sudden change in the rates of interest. Individuals and businesses that could earlier obtain loans to expand operations or to finance major purchases suddenly end up unable to acquire such funds. This effect can be felt throughout the entire economy because of a drop in homeownership rates and businesses being forced to cut back because of capital shortage. The credit crunch is often followed by a period where lenders are too lenient in offering c...
Read more