How Bridge Loans Could Take Your Company to the Next Level

Whether your small business is well established or just getting started, you know that it is important to focus on continual growth. Have you considered the ways in which hard money / bridge loans may help you take your company to the next level? To expand your customer base and market share, you may need consistent access to capital that allows you to add inventory, hire needed staff and much more. When planning for growth, consider using short-term financing to bridge gaps in your cash flow.

Taking Advantage of Opportunities

In the competitive, fast-moving world of business, you know that it is important to take advantage of opportunities as soon as they arise. When you see a chance to boost your company, you will not want to hesitate. Having liquidity constraints might dampen your ability to take advantage of excellent deals and opportunities. Fortunately, a bridge loan could help you get access to the cash you need up front, potentially mitigating your liquidity issues. If you have found an excellent deal on a commercial property, getting a bridge loan could help ensure that you will not miss this compelling opportunity.

Covering Immediate Costs

In some cases, you may need hard money / bridge loans simply to cover immediate costs. Covering a balloon payment could be one reason to consider seeking a bridge loan. These loans are generally not intended to last longer than six months to a year. Due to their short-term nature and inherently greater risk, they may have somewhat higher interest rates than longer-term, more traditional forms of financing. Many business owners find that this is an extremely fair trade-off in exchange for gaining immediate access to required funds. Bridge loans also may not carry prepayment penalties, which means you can likely pay off your loan as soon as you are able.

Installing Permanent Financing

Bridge loans are not intended to serve as long-term or permanent financing. Once the gap in your cash flow has been covered by your short-term loan, you will need to think about getting more permanent financing in place. After this task has been completed, you should be able to repay your bridge loan and enjoy the benefits of taking advantage of excellent deals or opportunities in the world of commercial real estate.

As a company owner, you know that cash flow gaps sometimes happen. Fortunately, hard money / bridge loans should be able to help you take advantage of opportunities, cover balloon payments and more. These loans can generally be repaid once permanent financing is put in place.

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