What does it mean to cross a bank bridge? What is a bank bridge business?

Bridge loan, also known as bridge loan, refers to the fact that after financial institution A gets the loan project, it is unable to operate due to a temporary lack of funds, so it discusses with financial institution B and asks it to help release the funds, and after the funds of financial institution A are in place, B withdraws. For B, this loan is the so-called bridge loan.

In the purchase and sale of real estate, especially in second-hand housing transactions, if the buyer has insufficient down payment and cannot wait for the bank to lend, the real estate agency, microfinance company or loan service company can provide the buyer with "advance" business to facilitate the purchase transaction. The real estate agent charges an "advance" fee from it. Duration of personal "advance" business:

Generally short-term, up to 1 year. Repayment method: monthly interest payment, one-time principal repayment.

Operation process: 1. The lending bank will issue a conditional loan commitment letter to the customer or affix the official seal on the new loan contract and mortgage contract to show that the approval is passed.

2. Investigate the authenticity of bank loan approvals.

3. The business department conducts credit investigation to the borrowing enterprise, and must understand the real reason why the enterprise cannot repay the bank loan when it expires, and write an investigation report.

4. The 3 to 5 people audit team of the business marketing center (business department and risk management department) - signed and approved by the general manager - approved by the company's decision-making committee. At the same time, a copy of the estimated operation process of the business is reported.

5. After the approval is passed, return the approval form to the business marketing center.

6. The undertaking business marketing center signs the entrustment notarization with the borrowing enterprise: the content is that in the absence of the enterprise, the personnel of our company can be fully entrusted to handle the cancellation of mortgage registration and re-mortgage registration procedures.

7. Require customers to provide materials to prove the use of funds, such as purchase and sale contracts, so that the bank can lend smoothly.

8. Require customers to provide blank checks for relevant fund transition accounts.

9. Sign the relevant contract of entrusted loan with the customer, or the pawn loan contract with equity pledge.

10. Provide guarantee for the joint and several liability of relevant enterprises and related personnel.

11. Loans. In principle, the loan amount shall not exceed 90% of the original loan amount.

What does it mean to "cross the bridge" in finance?

Generally, it means that a unit loan is about to expire and there is no money to repay.

But the credibility and operation of this unit is still good.

As long as the loan is repaid, you can also apply for a loan from the bank.

As a result, some people lend money to the unit, and the unit pays off the loan, and then pays it back to others after the new loan comes down.

This borrowing is called a bridge loan.

Bridge funds are a kind of financing of short-term funds, with a term of up to six months, and are a kind of funds that are connected to long-term funds. The purpose of providing bridge funds is to meet the conditions for docking with long-term funds through the financing of bridge funds, and then replace bridge funds with long-term funds. Crossing the bridge is only a temporary state.

The bridge fund and the guarantee loan fully demonstrate the leverage effect and guiding role of the financial funds, and have become the most direct and effective measures for enterprises to serve small, medium and micro enterprises.

The purpose of providing bridge funds is to meet the conditions of docking with long-term funds through the financing of bridge funds, and then replace bridge funds with long-term funds. Crossing the bridge is only a temporary state.

Bridge loan, also known as bridge loan, refers to the fact that after financial institution A gets the loan project, it is unable to operate due to a temporary lack of funds, so it discusses with financial institution B and asks it to help release funds, and after the funds of financial institution A are in place, B withdraws from the bridge loan.

For B, this loan is the so-called bridge loan. The main ones that play the role of financial institution A are the China Development Bank, the Export-Import Bank, the Agricultural Development Bank, and other policy banks, and the role of financial institution B is mainly played by commercial banks.

In a general sense, a bridge loan is a short-term loan, which is a bridging loan. Bridge loans are an effective tool to capitalize the purchase directly, and the biggest advantage of a bridge loan is that it is fast.

Bridge loans have a shorter term of up to one year, a relatively high interest rate, and are secured by some collateral such as real estate or inventory. For this reason, bridge loans are also known as "bridge financing", "bridge financing", "gap financing" or "reverse loans". It can be understood as a kind of borrowing behavior.

It means that after financial institution A gets the loan project, it is unable to operate due to a temporary lack of funds, so it discusses with financial institution B and asks it to help release funds, and after financial institution A has funds in place, B withdraws. For B, this loan is the so-called bridge loan. In our country, the main ones that play the role of financial institution A are the policy banks such as the China Development Bank, the Export-Import Bank, and the Agricultural Development Bank, and the main ones that play the role of financial institution B.

There is a more down-to-earth example here, for example, you open a company, you need to purchase and wait until the ** goes up to sell, but when purchasing, you find that your cash is not enough, you look for a bank loan, but the bank loan approval is long, at this time you have a better relationship with Chuanrong, you find him and say, "Ah, you look at our friend, I need some cash now, but the bank approval takes time, can you lend me 500,000 to cross the bridge, and pay it back in a week", So Chuanrong borrowed 500,000 yuan to you, and a week later, the bank loan was in place, and you returned Chuanrong's 500,000 yuan to him, at this time, a normal bridge loan was formed.