Bridge fund is a kind of short-term financing with a term of 6 months, which is a kind of fund connected with long-term funds. The purpose of providing bridge funds is to achieve the conditions of docking with long-term funds through the financing of bridge funds, and then replace bridge funds with long-term funds. Crossing the bridge is only a temporary state. Bridge funds and insurance loans fully reflect the leverage and guiding role of financial funds and become the most direct and effective measures for the government to serve small and medium-sized enterprises.

Bridge funds have the following characteristics.

1, short-term, usually no more than six months. 2. High gold content: it is very important for the operation of funds and plays a supporting and inciting role for users. 3. rate of return on capital Gao: Due to its importance, the return to fund providers is quite high. 4. The risk is easy to control: because the bridge-crossing funds are not long-term occupied funds, but temporary needs, there are often follow-up funds to replace them, so the risk is easy to control.

take for example

A Investors have borrowed 2 million yuan from the bank, and 200,000 yuan has not been settled, but they need capital turnover at this time. The bank requires the first 200,000 yuan to be settled before it can borrow 6.5438+0 million yuan.

So investor A went to find the bridge fund, asked him to lend 200,000 yuan, and then returned 200,000 yuan to the investor. During this period, investor A will pay a certain percentage of the bridge crossing fee. When the loan is approved, investor A will be equivalent to financing 800,000 yuan, of which 200,000 yuan paid by the investor to investor A is called bridge fund.

In advance, the borrower generally needs to write an IOU, which indicates the borrower's name, ID card, amount, use time, etc.

In the financial market, the amount of bridge-crossing funds is relatively large and the cost is higher than that of ordinary loans, so they are all short-term loans. Long-term loans are not cost-effective for investors who need to advance funds, and lenders are also worried about the safety of funds.