Bridge loans are a useful form of short-term financing used to provide an infusion of cash funding to a business to cover a period of slower cashflow. Examples of when a bridge loan may be useful include when restaurants or tourist destinations have slower seasons and expenses need covering until the busy season picks up, when cash is needed to cover costs between mergers or acquisitions, or most other times when the funds are not needed for longer than six to twelve months.
You may be familiar with the concept of bridge loans as it applies to purchasing a house. When cash is needed to “bridge the gap” between buying a home and selling your previous one, you may take out a bridge loan to put toward the down payment for your new house until your previous home sells and you see a profit from the sale. Bridge loans in business are used to similarly kick start the next phase of your business life by providing an increased degree of finance flexibility. Quickly close on properties, complete renovations, cover payroll or other current expenses without worrying about drumming up business while expanding or remodeling.
Typical bridge loans cover a period of three to six months but can be longer depending on the needs. Think a bridge loan might be the right fit for your situation? Let Express Capital Solutions help you navigate the application process. Contact us online or over the phone today.