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.