Bridge Financing

A bridge loan is a short-term loan that a company uses until it can secure permanent financing.  They are commonly known as interim financing.  Bridge loans are used to provide a company with liquidity until the next level of financing becomes available.  These loans “bridge the gap” between available financing and needed financing.  Bridge loans typically last one year or less and have no prepayment penalties.

Some of the benefits of term loans are:

• Pay off existing short-term obligations
• Meet current obligations with immediate cash flow
• Complete a merger or acquisition
• Prove working capital (payroll, utilities, and inventory)
• Compensates real estate companies for the lag between selling a property and buying another

If your business has unpredictable cash flows, operates in a cyclical business cycle, or calls for profitability in a year but you only have working capital for six months, contact us