Document background
The Bridge Financing Agreement is essential in situations where companies require immediate funding but are awaiting more permanent financing arrangements. This document type is commonly used in acquisitions, real estate transactions, or when anticipating significant capital events. Under Austrian law, the Bridge Financing Agreement must comply with specific regulatory requirements, including the Austrian Banking Act (BWG) and Financial Market regulations. The agreement typically includes detailed provisions on facility amount, interest calculations, security arrangements, conditions for drawdown, and refinancing obligations. It serves as a crucial tool for maintaining business operations or securing time-sensitive opportunities while permanent financing solutions are being arranged. The temporary nature of the financing is reflected in its terms, usually ranging from a few months to a year, with clear exit mechanisms and refinancing provisions.
