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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 may arise. The term “bridge” is just to signify that the loan is a short-term loan to hold you over between longer-term loans or another expected source of capital. It is important to ensure that your cash flow can sustain the payments since it is short loan and is used for bridging a gap for your business.

Bridge loans effectively provide temporary funding to address specific working capital or investment needs.  A Bridge Loan is very useful to help cover day-to-day expenses and cash flow gaps from payment plans. Bridge loans provide businesses with the time they need to address these issues.

Benefits of a Bridge Loan

The greatest benefit of the Bridge Loan is its Speed. You can start a project or provide a service instantly. There are minimal document requirements and funding can be completed in 24 hours or less!  It allows business’s to take advantage of opportunity’s to purchase inventory or upgrade equipment. Allowing businesses to secure opportunities that they may otherwise miss. Business’s use the bridge loan to address instant needs, such as new projects and inventory. Bridge loans can help businesses take advantage of inventory discounts from suppliers.

Another great thing about Bridge Loans

A great thing about Bridge Loans is that they can be utilized in all different industries. Some industries that tend to greatly benefit from bridge loans are construction, manufacturing, auto repair, doctors and medical practices. In these industries it is typical to allocate money upfront for labor, material, and equipment causing cash flow complications.

Using a Bridge Loan for longer term financing

Businesses also utilize bridge loans when they need an infusion of cash to hold them over until they receive a multi year term loan or SBA Loan that may take weeks or months to secure. A bridge loan is short-term funding that will bridge the gap from the existing demand for financing and the long term financing strategies. With bridge loans as a short-term option, businesses don’t pay interest for as long of time as they do with a usual loan. This does cause interest on a bridge loan to be at a higher rate.

How SMB Compass Can Help

SMB Compass provides Bridge loans from $10,000 to $2,000,000 with rates from 8%- 28% in as little as 24 hours. The typical bridge loan term is between 6-24 months. The process to secure a bridge loan is easier than other types of financing. You can apply online through SMB Compass safe and secure application that can be completed in a matter of minutes. There is limited documentation and we only need to request 3-6 months of bank statements to apply. After the application is processed we will provide you with the best loan offer possible and can have the capital deposited directly to 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. It is quick and easy to apply, see what you will qualify for today!

Speak with an SMB Compass Lending Advisor today so we can help expedite the loan application process for you. Apply today!