A bridge loan works by providing approved business applicants access to capital in a very fast and convenient way while the business attempts to secure permanent long-term financing. It gives businesses access to lump sum of capital during that gap between applying and getting approved for a long-term loan. Similar to a small business loan, with a bridge loan businesses may benefit from receiving funds in a lump sum with fixed payments and fixed terms. The main difference is that a bridge loan is considered a short-term loan while a small business loan is typically long-term.