A bridge loan is one example of short-term financing which can help a business handle its near-term obligations while waiting for approval on a long-term business loan. It is very often used in commercial real estate where the timing of a transaction is important, and it is necessary to secure funding quickly in order to take advantage of an available opportunity.

How A Bridge Loan Can Help Your Business

You may have a need to make an equipment purchase at an auction or from a secondhand dealer, and you need to get funding quickly while the opportunity still exists. This is one way that a bridge loan could satisfy a business need, and allow you to take advantage of a short-term opportunity. It’s also very common for a bridge loan to be used to make a real estate purchase because it’s often necessary to move quickly in order to take advantage of a property purchase that will only be available for a short time.

Bridge loans are also used for real estate improvement, helping an entrepreneur expand or renovate a specific property, for the purpose of modernizing the facilities and expanding your holdings. Some real estate agents make use of bridge loans to purchase foreclosed assets, and these might be deeply discounted properties which can be purchased using funding secured by external collateral.

It’s also possible to make seasonal inventory purchases by using a bridge loan since it could be highly advantageous to your business to have inventory restocked prior to a seasonal sales peak. This would allow you to avoid having to take a merchant cash advance or some other funding opportunity that might cost you more in the long run.

One of the big advantages of bridge loans is that you can generally secure funding fairly rapidly, without having to go through a long and tedious process of underwriting. That’s why they are so often used to take advantage of opportunities that are only available for a brief period of time and must be acted upon immediately.

Would A Bridge Loan Help your business? 

If you need bridge financing for any of your commercial projects or transactions, contact us at Sterling Capital Consulting so we can discuss some opportunities which may be available to you.