Document background
The Bridge Loan Term Sheet is a crucial document used in time-sensitive financing situations where temporary funding is needed until permanent financing can be secured. It is commonly used in Canadian business transactions across various sectors, particularly in situations involving acquisitions, refinancing, or other corporate opportunities requiring quick access to capital. The term sheet provides a structured summary of the principal terms and conditions of the proposed bridge loan, including key commercial points such as loan amount, pricing, security, and conditions precedent. While primarily governed by Canadian federal banking laws and provincial securities regulations, the document serves as a roadmap for negotiating and documenting the final loan agreement. It is essential to note that while most provisions in a Bridge Loan Term Sheet are non-binding, they set important expectations for all parties involved and streamline the path to final documentation.
