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A “Bridge loan” gives businesses the ability to fund the gaps between a long-term debt solution or an equity infusion. Technically, a bridge loan is a short-term loan. It is designed to address immediate financing needs, such as cash flow gaps, new business opportunities, and unexpected circumstances that can arise. The term “bridge” signifies that the funding is a short-term loan designed to hold you over between longer-term funding options or another expected source of capital.

It’s vitality important to ensure that your cash flow is able to sustain the repayments since it is short loan designed to bridge a gap in your business.

Bridge loans effectively provide temporary funding to address specific working capital or investment needs.  A Bridge Loan is very useful in helping to meet day-to-day expenses and cash flow gaps. Bridge loans also provide a business with the time they need to address long term solutions.

Benefits of a Bridge Loan

A major benefit that comes with a Bridge Loan is the ability it gives you to act immediately. You can begin a project and or provide a service immediately and without delay. There are minimal document requirements and funding can be completed in as little as 24 hours or less.

This allows a business to take advantage of opportunities to purchase inventory or upgrade equipment. Allowing a company to secure opportunities that may otherwise be unattainable. Companies use a bridge loan to address instant needs, such as new projects and the purchasing of inventory. The funding can also help businesses take advantage of inventory discounts from suppliers.

Another great thing about Bridge Loans

A great thing about Bridge Loans is they can be utilized in most industries. A sampling of industries that tend to greatly benefit from bridge loans include construction, manufacturing, auto repair, doctors and medical practices. In these industries it is typical to allocate money upfront for labor, material, and equipment that can lead to cash flow short-falls.

Using a Bridge Loan for longer term financing

Businesses also utilize bridge loans when they are in need of a cash infusion to hold them over until they receive a multi year term loan or SBA Loan, that can take weeks or even months to secure.

A bridge loan is short-term funding solution that will bridge the gap for an existing demand for financing and a long term financing strategy. By using bridge loans as a short-term option, a business doesn’t pay interest for as long a time as you normally would with a traditional loan. This results in bridge loans having higher rates of interest.

How SMB Compass Can Help

SMB Compass provides Bridge loans from $10,000 up to $2,000,000 with rates ranging from 8%- 28% in as little as 24 hours. The typical bridge loan term is between 6-24 months, and the process is generally easier than other types of financing. You can apply online through SMB Compass safely and securely.

In fact, the application can be completed in a matter of minutes. There is limited documentation and we only need to request 3-6 months of bank statements in order for you to apply. After the application is processed, we will provide you with the best loan offer possible, and have the capital deposited directly into your business bank account in less then 24 hours.

The typical payment plan is taken on a daily, weekly, or monthly basic until the loan is paid off. There is no early pay-off penalty. The best part is, it’s quick and easy to apply.

So, go ahead, see if you qualify today!

You can also Speak with an SMB Compass Lending expert today. We can help expedite the loan application process for you quickly and effortlessly.