Vahekihendamist

Vahekihendamist, often translated as "interim financing" or "bridge loan" in English, refers to a type of short-term financing used to cover a gap in funding until a more permanent solution is secured. This financing is typically used in business transactions, real estate deals, and project development. The purpose of vahekihendamist is to provide immediate liquidity when a company or individual needs funds quickly but is awaiting a longer-term loan, investment, or sale of an asset.

The terms of vahekihendamist are generally more flexible than traditional long-term loans, reflecting the shorter duration and often higher perceived risk. Interest rates can be higher due to the expedited nature of the financing and the temporary security arrangements. The repayment of vahekihendamist usually comes from the proceeds of the anticipated long-term financing or asset sale. For example, a company might use vahekihendamist to acquire a new property while simultaneously seeking a mortgage, or a developer might use it to begin construction while waiting for a larger equity investment.

The primary advantage of vahekihendamist is its speed and ability to bridge critical funding gaps, preventing project delays or missed opportunities. However, borrowers must be confident in their ability to secure the subsequent, permanent financing, as failure to do so can lead to significant financial strain, including the potential loss of assets used as collateral. Vahekihendamist requires careful planning and a clear understanding of the exit strategy.