Bridge loan financing is an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing which is expected to be paid back – generally within the range of 6 to 36 months – once the borrower obtains more permanent financing. Bridge loan financing is important for not missing opportunities when they may arise. It is basically used as transitionary financing until your business can find a long-term and cheaper type of financing. Usually bridge loan financing is used in commercial real estate to quickly close deals, rescue a property from foreclosure, and many other purposes. If a company sells a property which they will not receive payment for in a few months, they can still take advantage of an opportunity for a new property to be purchased by using bridge loan financing. The business can repay the bridge loan as soon as they receive payment for their initial sale of property.
Sudden investment opportunity?
Acquiring property? Need funding for a merger?
Bridge loans in corporate finance are sometimes called "gap financing", and used to cover the time between redemption of one bond issue and its replacement by a new issue. They can also be operating loans for periods between LOI and acquisition, or quiet period and IPO.
Whether it is through a commercial mortgage lender, an asset based lender, or a venture firm, there are bridge loan sources in our directory. Let us help you find the financing that matches your business’ needs.