Transitional Funding
Transitional Funding is short-term funding used to bridge a financial gap between rounds of financing or until a startup becomes cash flow positive.
Benefits
Transitional funding supports operations between financing rounds, ensuring stability.
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.
Key Takeaway
Transitional funding supports operations between funding rounds, maintaining stability.