There are various synonyms for the term bridge financing. It’s referred to as gap financing, swing financing, and interim financing, which all mean the same. Financial jargon apart, this loan is a temporary fix for businesses in times of need.
With a bridge loan, you can cover some pending expenses and buy more time for your business. If you have an asset to put as collateral, you can get a loan very quickly. A personal guarantee can help you secure a loan if you’re on good terms with the lender and know them personally.
Let’s look at some ways it can benefit your company.
New Real Estate Investment
If you’re a healthcare and fitness clinic and there’s an emerging niche for your services in a remote area, you should grab that opportunity. It helps to expand your business and acquire a national reputation. But the biggest deterrent is funding. Moving to a new place incurs the cost of buying land to set up your business.
That’s a fixed cost that you can’t avoid but an investment that’ll bring significant returns nonetheless. If you’re short on cash to meet the down payment for the new commercial estate, bridge financing is the answer. These short-term loans allow you to fund a real estate investment without your business going under.
As the world wakes to a new normal, businesses are resuming their usual pace, and offices are on the verge of re-opening. But that can only happen if companies understand and prioritize social distancing until the world is cleansed from coronavirus. That calls for a major remodeling of office spaces that demands time and money. If businesses don’t already have funds to cover the cost without compromising other expenses, bridge financing helps.
Bridge loans fulfill the requirement in the short-run for a cost that’s usually higher than regular loans. Once your business is up and running, you can pay it back.
As the digital landscape evolves, businesses are met with a new challenge to adapt and improvise. This means they need to alter their marketing campaigns and optimize them for SEO. Unless they have an in-house team of SEO digital experts, they’ll need to outsource the job. But buying this service can cost a lot. However, letting go of this opportunity can cost more.
If you’re sure your business will recover financial stability in a while, it’s wise to opt for bridge financing. Marketing demands considerable research and development and offers high returns. It’s a promising investment to make if you have the money that interim lenders can provide.
Are you interested in talking more about bridge financing? Global Capital Partners Fund specializes in bridge financing and other hard money loans in Cincinnati, OH. Reach out at +1-800-514-7350 or write to them at firstname.lastname@example.org, and they’ll be sure to help.