Bridge funding is often used as a temporary way of covering short-term expenses that a business might have, until funding on a more long-term basis can be obtained. The term bridge funding came about because this kind of loan serves as a bridge between two different funding possibilities, and provides a temporary solution to a financing need.
This allows any business owner to maintain operations while still working on obtaining a more permanent financial solution. For the most part, bridge loans are only issued by private lenders instead of banks and other traditional lenders, and they will typically cover a period of between six and 12 months, but seldom longer than that.
How bridge funding can benefit your business or personal life
Since bridge loans are not offered by banks, they can generally be approved much more quickly by a private lender. As opposed to the months you may have to wait for approval from a bank, you might get approval for a bridge loan in just a few days. Bridge loans can be offered in amounts up to 80% of the property value owned by the borrower, in conjunction with the real estate the borrower wishes to purchase.
These types of loans are not always used for business purposes, but can also be used for personal matters as well. In fact, a great many homeowners have used bridge loans to purchase a new home while their current home is still on the market. Assuming that the current residence is likely to sell in the near future, a bridge loan can provide the needed capital for any homeowner to purchase some newer home they want to move into.
Interested in obtaining a bridge loan?
We may be able to provide you with the funding necessary for a bridge loan. Contact us today at Northgate Capital Finance so we can discuss some options for obtaining this kind of funding for your business.