As the name suggests, a bridge loan helps in bridging financial gaps. The bridge loan meaning is simple to understand – imagine a short-term credit solution that allows individuals or businesses to meet urgent needs before a more fitting solution is found. For instance, consider this bridge loan example: Say your friend wants to buy a new home after selling her existing home. However, she can rely on a bridge loan to buy the new property before her existing one is sold. Keep in mind that a bridge loan comes with high-interest rates and usually requires collateral.