I am looking for a short term buisness loan and saw a loan for "GAP" financing. What is GAP financing and are there any limitations on its use?

I think is a term used mostly in residential lending to help people qualify for purchases that they otherwise can not. But it is also used to describe any type of arrangement where a deficiency needs to be cured. More of a general term, I think. For example, the introduction of a junior lender to fill a gap created by insufficient equity could be called “gap financing”.

The one thing that is important to understand is that the fact that something exists or has been done before does not mean that it might be used in other requests. In commercial lending, requests are looked at on a case by case basis.