Bridge Financing

Monies required to help the borrower “get from here to there,” where “here” is often “privately held” and “there” is an IPO or similar situation, when money is about to run out, but an infusion is on the horizon.

Larry is the CEO of a software company that is set to raise funds via an IPO in two months. However, he doesn’t have enough money in the bank to pay the associated lawyers’ and bankers’ fees, so he takes out a 60-day loan to pay for those expenses.

Moe gets paid every Friday, but his rent is due this Wednesday, so he asks his landlord for a two-day grace period.

Curly is hungry, but won’t have any money until his Social Security check deposits on Tuesday. He’ll gladly pay you then for a hamburger today.

Larry, Moe, and Curly are all in need of bridge financing.