A short-term loan to a firm that is to be repaid when the firm obtains long-term financing or raises funds through issuing equity is called a:

Question

Quizplus · Accepted Answer

A bridge loan is a short-term loan provided to a firm to bridge the gap between the current financial situation and the long-term financing or equity issuance. It helps the firm to meet its immediate financial obligations while waiting for long-term financing. Therefore, a bridge loan is the best option for the situation described in the question. The other options, such as temporary loan, stop-gap loan, and turn-around loan, do not exactly fit the given scenario.

A Short-Term Loan to a Firm That Is to Be