Bridging funds are a kind of short-term financing, with a term limited to six months, and are a kind of funds connected with 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 the bridge funds with long-term funds. Crossing the bridge is only a temporary state.
Bridge funds have the following characteristics:
1. The term is short, usually no more than six months.
2. High gold content: For capital operations, it is very important to the user, playing a supporting and leveraging role.
3. High return on capital: Due to its importance, the return given to capital providers is quite high.
4. Risks are easier to control: Since bridge funds are not long-term occupied funds, but are only a temporary need, and are often replaced by follow-up funds, risks are easier to control.