Transitional Funding
Content
Definition
Transitional Funding is short-term funding used to bridge a financial gap between rounds of financing or until a startup becomes cash flow positive.
Usage and Context
Transitional funding is short-term money to fill gaps between funding rounds.
Frequently asked questions
- What helps to bridge the gap between short-term cash requirements and long-term loans? A working capital loan helps close the gap between short-term cash needs and long-term loans.
- What is a short-term funding gap? A short-term funding gap occurs when a company’s immediate financial obligations exceed its available cash or credit.
- What is bridge gap funding? Bridge gap funding is short-term money used to meet immediate cash needs until long-term funding or revenue is secured.
Benefits
Transitional funding supports operations between financing rounds, ensuring stability.
Conclusion
Transitional funding supports operations between funding rounds, maintaining stability.
