What are key features of bridge financing?

(b) Key features of Bridge Financing (i) Bridge finance refers to loans taken by a company normally from commercial banks for a short period because of pending disbursement of loans sanctioned by financial institutions. (ii) The bridge loans are repaid/ adjusted out of the term loans as and when disbursed by the concerned institutions. (iii) Bridge loans are normally secured by hypothecating movable assets, personal guarantees and demand promissory notes. (iv) Generally, the rate of interest on bridge finance is higher as compared with that on term loans.