Short-term funding used to meet immediate financial obligations while arranging permanent financing or awaiting a future cash flow event. This temporary solution 'bridges' the gap between current needs and expected future funding.
The metaphorical use of 'bridge' comes from Old English 'brycg,' referring to a structure that spans a gap. In finance, this metaphor emerged in the 1960s as companies increasingly needed temporary funding solutions while arranging longer-term capital structures.
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