29 Nov The Basics of Bridge Loans
A bridge loan is a rare example of a finance term that makes intuitive sense: a loan that bridges the gap from one big financial move to another. These bridge loan gap financing programs support small businesses through times of change and can be a stepping stone to a new phase of growth and success.
What is bridge loan gap financing for businesses?
We see the bridge loan concept quite frequently in residential real estate transactions, and it’s an example that translates into the business world, too. When homeowners choose to sell their home and buy a new one, they obviously hope they can earn enough from the sale to pay for most, if not all, of the next house. But as anyone who’s actually bought or sold a home before can attest, things rarely work out so perfectly. That’s why some might consider taking out bridge loan gap financing to cover the down payment on the new house, allowing them to sell their old one more easily.
Bridge loan gap financing for businesses can be used in a similar way to acquire new real estate or replace an expensive asset, but the possibilities don’t end there:
● Gap financing can provide working capital when cash from a previous round of investor fundraising is almost out, or you’ve exhausted another source of cash, but your business needs to make payroll and pay time-sensitive bills.
● When disaster strikes, business owners rely on small business insurance to cover those associated costs. Even with the best insurance, though, it can take weeks or longer before claims are approved. Bridge loans help fill in these gaps as you wait for more help to arrive.
● If you just need extra cash to tide your business over until customer invoices are paid, a bridge loan might be an ideal short-term solution.
The power of bridge loan gap financing is in their flexibility. When time is of the essence in a real-estate agency business transaction or just to keep the lights on, having a dependable lender on your side makes all the difference. QuickBridge excels in providing small business loans for almost any need. That could mean a bridge loan to seal the deal on a new office location or meet other long-term objectives, keeping things running at full speed for years to come. We do this all with an easy, single-page application, transparent terms and customer service that’s always on call.
If your business needs a bridge over troubled waters, talk to QuickBridge today for a closer look at what’s possible.