What does Gap Financing mean? Read on to discover the definition & meaning of the term Gap Financing - to help you better understand the language used in insurance policies.
Also referred to as bridge or interim financing, gap financing refers to a short-term loan for the purpose of meeting an immediate financial obligation until sufficient funds to finance the longer-term financial need can be secured. Gap financing carries a higher cost to the borrower and is most appropriately used to meet short-term cash flow needs.
We hope the you have a better understanding of the meaning of Gap Financing.