A bridge loan is a type of short-term loan that is typically taken out for a period of 6 to 12 month for the purpose of “holding-over” a company until they can secure longer-term financing or they can receive significant cash inflows from a signed deal. Bridge loans do not come with extensions, so they are not preferred during periods of economic contraction.A more founder-friendly alternative to a bridge loan, is revenue based financing, which enables a company to convert their future revenues into upfront capital.