Übergangsfinanzierung

Übergangsfinanzierung, also known as bridge financing or interim financing, refers to short-term loans used to cover immediate financial needs until a longer-term funding solution can be secured. These loans are typically used when there is a gap between the need for funds and the availability of permanent capital. Examples include situations where a company is awaiting a larger investment round, a property buyer needs to close on a new home before selling their old one, or a business requires funds to cover operational expenses while waiting for a specific project to generate revenue.

The terms of Übergangsfinanzierung are generally shorter than traditional loans, often ranging from a few months to a couple of years. Interest rates can be higher due to the short-term nature and perceived risk. The collateral required can vary depending on the lender and the specific circumstances. The primary purpose is to provide liquidity and continuity, preventing financial disruptions while more stable and long-term financing is being arranged. It's a crucial tool for managing cash flow and seizing opportunities that require immediate capital.