They may choose to use a bridge loan to provide working capital to cover their pay slip, rent, utilities, inventory fees and other expenses until the funding cycle is completed. Bridge financing, often in the form of bridge credit, is an intermediate financing option used by companies and other companies to consolidate their short-term position until a long-term financing option can be arranged. Bridge financing is usually done by an investment bank or venture capital firm in the form of a loan or equity participation. In investment banking, bridge financing is a method of financing used by companies before their IPO. This type of bridge financing is intended to cover the costs associated with the IPO and is generally short-term in nature. Once the IPO is complete, the money borrowed from the offer is immediately repaid by the credit liability. A bridge loan is a short-term credit used until a person or company provides permanent financing or removes an existing bond. . .