A small, short-term loan that is intended to bridge the borrower’s gap until the next salary payment is due (a small, short-term loan that is intended to bridge the borrower’s gap until the next salary payment is due)

A small loan granted by a bank to a wage earner to help him or her bridge the gap until the next payday, sometimes also called a payday loan (a small, short-term loan that is intended to bridge the borrower’s cash flow gap between paydays). – A loan granted by the bank on a short-term basis with the purpose of helping to bridge the gap until a longer-term financing agreement is concluded. The interest rate on such loans is usually quite high; they are usually secured by real estate or inventories (a short-term loan to cover the immediate cash requirements with relatively high interest rate that is used until a person or company can arrange a more comprehensive longer-term financing). – Particularly in commercial real estate finance, a loan designed for the purchase of a new house, whilst awaiting the proceeds from the sale of a previous property. – See bridge loan, equity bridge loan, term loan, template.

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