---
title: What is a Bridge Loan?
description: "# What Is A Bridge Loan? [A bridge loan is short-term financing](https://ahlend.com/bridge-loans/) that provides immediate capital to investors while they arrange for permanent funding or prepare to sell an asset. It bridges the gap between today’s opportunity and tomorrow’s long-term…"
url: "https://ahlend.com/docs/what-is-a-bridge-loan/"
updated: "2026-10-20"
category: Bridge Loans
---

# What is a Bridge Loan?

# What Is A Bridge Loan?

[A bridge loan is short-term financing](https://ahlend.com/bridge-loans/) that provides immediate capital to investors while they arrange for permanent funding or prepare to sell an asset. It bridges the gap between today’s opportunity and tomorrow’s long-term solution.

Because this loan is secured by the real estate itself, approval leans more on current value, [exit strategy](https://ahlend.com/docs/exit-strategies-for-bridge-loans/), and sponsor experience than on W‑2s or tax returns.

## Key Features of a Bridge Loan

Bridge loans typically run 12 to 18 months; they are [interest-only](https://ahlend.com/docs/how-do-interest-only-payments-work-on-bridge-loans/), which helps reduce monthly payments; they are asset-based, meaning lenders focus on property value and business plan rather than W-2 income; they [close quickly](https://ahlend.com/docs/bridge-loan-closing-timeline/), often in 10 days or less; and they are flexible, allowing proceeds for acquisitions, refinances, or cash-outs.

## Why Investors Use Bridge Loans

Investors rely on bridge loans when timing is critical. They work well for purchasing a new property before another sells, for acquiring an asset that banks will not finance yet, or for covering short-term expenses during a renovation or repositioning. In fast-moving markets, the ability to close quickly often means winning a deal instead of losing it.