Bridge Financing, also referred to as bridge loans, are loans granted to business entities in anticipation of an impending loan or equity investment. Typically, the bridge loans are valued in isolation and not as part of the business entity. Because it is expected that the bridge loan is short term and merely making available funds to the business while expecting the main financing in due course, business valuators normally value the bridge loan at fair market value, making provisions if there are possibilities the business entity will have issues repaying the bridge loan or the main financing will delay. The market value of bridge loan is deducted together with the market value of other term loans from the enterprise value to arrive at the fair market value of equity.