Gap Financing is a term mostly associated with mortgage loans or property loans. It is an
interim loan given to finance the difference between the floor loan and the maximum permanent loan as committed. This is to provide funding during the time between the end of loans extended during the development stage of a project and the beginning of the permanent mortgage extended to the buyer.When getting a home deposit or short term financing, a deposit advance is funded within 24hours of receipt of all paperwork and contracts requested normally.
Interim financing is not the same thing as gap financing. The difference between them is that gap financing is not secured. For gap financing, the project has a funding shortfall, or gap, because its contracts do not provide full funding of the costs of the film.
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1 comment:
Oh wow, I always thought gap and interim financing were the exact same thing. I'm glad I got that cleared up
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