Which characteristic best describes a bridge loan?

A bridge loan is specifically designed to provide temporary financing for a short period, usually up to one year. The characteristic that best describes a bridge loan is that it is typically repaid from the sale of equipment or real estate. This aligns with the nature of bridge loans, which are often used to bridge the gap between the need for immediate funds and obtaining more permanent long-term financing. Borrowers usually rely on the imminent sale of an asset to pay off the bridge loan once they have secured new financing or completed a sale transaction.

In the context of the other options, a term longer than one year would not be fitting for a bridge loan, as these loans are intended to provide short-term funding solutions. Repayment through operating cash flow and secured by receivables tends to describe other types of financing, such as lines of credit, rather than the asset-focused repayment typically associated with bridge loans. Lastly, while interest-only payments can be a feature of certain loans, the essential nature of a bridge loan focuses on the rapid turnover of capital to finance immediate needs, which is effectively linked to the sale of assets.