Bridge financing is often a short-term loan used by a business to navigate a period of financial difficulties. A venture capital firm or investment bank often issues the loan. Below is a list of ways bridge loans can create new opportunities for your business.
Accommodating Seasonal Inventory Needs
Most retailers prefer using lines of credit when purchasing inventory. Unfortunately, most businesses have maxed out the line and cannot access the funding. Many retailers buy the needed inventory with a merchant cash advance, which is often costly, to prepare for sudden surges in sales. Business owners can opt for bridge loans rather than cash advances to purchase inventory and refinance the bridge loan with sales proceeds or conventional business loans.
Your business may require purchasing secondhand equipment at an auction that provides a discount. Such opportunities do not last long. You may not be sure about the model you want to purchase and its value, making it hard to secure conventional financing for the purchase beforehand. In this case, other assets can collateralize bridge loans to finance the new equipment. You can refinance or pay the loan later with a longer-term loan usually secured by the purchased equipment.
Improving Real Estate
Bridge loans are an excellent option for renovating a property. Many manufacturing, industrial, and retail companies must renovate, expand, and improve their property to develop new offerings or expand production. Securing a conventional term loan is usually tricky, primarily if the property is fully collateralized. Bridge loans can assist you when an opportunity to expand your facilities, refine product lines or add value to property arises. You can then refinance your property once the work is complete, which will be at a higher value.
Acquiring Foreclosed Assets
Visiting a sheriff’s auction enables you to purchase some significant assets, but you are not always sure what you will find. The lack of specifics makes it hard to arrange conventional financing before bidding at an auction. Most lenders require clients to pay for such assets through loans secured by other assets or cash. Bridge loans can be used to bid on assets or make an offer and proceed to make interest-only payments until you can refinance with the conventional loan.
A bridge loan helps businesses to bridge funding requirement gaps. Bridge loans are beneficial when purchasing secondhand assets or conducting real estate transactions. Contact us at Artis Commercial Capital to secure a bridge loan to finance your business needs.
Even before you launch a business venture, you need to plan. Once in business, the task of planning doesn’t stop. As your business evolves, its goals may change; your vision for its growth and profitability may change along with it.
Come Up with a Good Plan
A good plan accounts for a number of things, the foremost of which are goals for your venture. Good goal setting is a balance between being vague and simplistic versus being too far out of reach. The key is to make your goals and objectives specific, achievable, and moderately challenging.
Here’s an example. You have built a rare coin business and do most of your sales online. You are thinking of opening up a physical store location as well. That idea by itself is too vague. A specific achievable goal would be to find a good location and establish your business within it during the next six-month period. In order to do that you determine that you need about $50,000 in working capital to execute the plan.
Organize Your Human Resources
Don’t forget that no business person operated on an island. Seek out advice, opinion, and financial help from others as needed. Continuing in the example of a coin shop, check with professional numismatic organizations for people who have done the same. Visit shops in other cities to see how they run their operation. Find professional financial help as needed if you don’t have the capital your need.
Consider Your Financial Situation
An achievable goal such as opening up a brick-and-mortar store will require some funds to get the ball rolling. How are you set for that? Can you cover the rent and security that you will need? Are you planning on hiring any employees? How will you pay for your initial numismatic inventory?
Artis Commercial Capital
As your funding needs become clear, consider partnering with Artis Commercial Capital. They have a full suite of financing options for the small business person. They can suggest the best one for your business goals.
Bridge loans are financing options that provide short-term loans for a variety of purposes. Homeowners often use bridge loans to buy new homes while they are still awaiting the finalization of the sales of their previous homes. Companies in various industries use bridge loans so they can meet their expenses until customers pay in full. Here is some information to help you determine whether a bridge loan will meet the needs of your business.
The Basics of Bridge Loans
Bridge loans offer a short-term financing option of six to 12 months that bridges gaps in funding. For the purchase of real estate, they bridge the gap for homeowners so they can place a down payment on the new property before finalizing the sale of the previous home. For businesses, bridge loans keep cash flow strong while they complete projects or fill orders until they can then obtain final payments from their clients.
Uses for Bridge Loans
As a financing option, bridge loans make it possible for companies to continue to operate while they undertake large projects. For instance, you can use this funding to pay the salaries of your employees, obtain needed materials and inventory, purchase and repair equipment, upgrade technology, and bid on and prepare for future jobs. You can accomplish all this while keeping company cash flow strong.
Advantages of Bridge Loans
Whether you are purchasing real estate or completing company projects, bridge loans provide you with an effective method of meeting your expenses. Because they are generally provided by alternative lenders, you can have immediate access to the cash you require by means of a swift application and funding process. This will provide you with the finances you need to finish projects, handle any unexpected expenses, pay your personnel, and prepare for upcoming work.
For more information and advice on the financing option of bridge loans, get in touch with Artis Commercial Capital.
The disruption of supply chain distribution due to global events can be devastating for consumers and businesses alike. However, with ingenuity, planning, and a shift in focus, your company can survive and even prosper despite supply chain instabilities. Here are some strategies to help you accomplish this.
Research the Situation
When your business’s supply chain distribution becomes disrupted, find out exactly why this has happened. If only one vendor is affected, you may be able to find another that can fill the gap. However, if the problem is more widespread, it will take longer to resolve.
Share What You Know
Be sure to clearly communicate about what is happening with employees, shareholders, and clients. Share whatever details you know, acknowledge the hardship it has created for them, and apologize for any difficulties they might be experiencing.
Prepare a Plan
Instead of dwelling on problems caused by the disruption of your supply chain distribution, work on a plan that will minimize the negative impact and even help your company move past it and grow. Consider things you can do and resources you can allocate that will bring about swift improvement.
Emphasize Customer Service
If some parts of your company have been inevitably affected by supply chain difficulties, focus on other aspects. Consider improvements you can make in your business practices. One area you can zoom in on is customer service. Tending to the needs of your customers will help to inspire long-term loyalty.
When your company is going through a crisis, it is easy to lose sight of your personal needs. However, it is imperative that you should get enough rest, exercise, and recreation so that at work you are functioning at full strength.
Look to the Future
Besides dealing with present difficulties, use this experience to better prepare your company for future disruptions. Acquire effective software for supply chain management and inventory tracking. In addition, be on the lookout for discounts so you can increase your inventory, and seek out alternatives to your present suppliers.
For more advice on growing your business despite disruptions to your supply chain distribution, contact Artis Commercial Capital.