BRIDGE LOANS
THE RIGHT FUNDING FOR YOUR BUSINESS
Our Texas based bridge loan team focuses on low rates and quick approval for your company’s short-term financing needs. This type of financing is typically known as “gap financing” and “swing loans” because they are specifically designed to bridge a gap while you are waiting for full funding on your long-term financing.
If your business is looking for bridge loans in the Rio Grande Valley, Texas or Nationwide, we just might have a program for you. Our financing is customized to your unique situation, which protects your cash flow until permanent financing is available.
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BRIDGE LOANS: TERMS
Our Texas bridge loan specialists focus on creating the right package for your unique situation because bridge loans are designed to cover a temporary gap in financing. As such, they are expected to be repaid relatively quickly. Most often they are closed out with the funds that arrive with permanent financing and long term loans.
With that goal in mind, most of our bridge loans and gap financing has a term or length of 3 years or less. This allows your business to secure tenants, complete renovations or construction and then apply for the ideal permanent financing as soon as you are in a position to be approved.
BRIDGE LOANS: RATES AND APPROVAL
Bridge loans are specifically designed for the speed of financing. With shorter terms, these loans often require collateral and have rates that are a few points higher than the traditional, long-term commercial loans.
However, bridge loans are really great at what they are designed for i.e. overcoming a short-term gap in the financing process and cash flow. The application, approval and funding process is usually much faster than traditional loans.
This ensures that your gap can be overcome sooner than you think, rather than waiting many months, which would be required for permanent or long-term financing. Nevertheless, be rest assured that our team works with you to meet your schedule, and get you the absolute best rates available while doing so because they know just these loans work.
WORKING CAPITAL TILL EQUITY IS SECURED
Our Texas based bridge loan team of specialists find that the most common usage for a bridge loan is providing working capital till equity financing is secured. Nevertheless, it's quite common to use bridge loans in the real estate investment world, since they cover the interim between the purchase of one property and the sale of another.
A more common usage of this type of financing, however, is to shield the working capital during an expansion or a round of equity funding and as the company grows, the bridge loans is used to cover payroll, rent, and any operating costs while it still works to secure permanent financing.
This long-term financing may come for an equity investment secured for a growing company, or a newly acquired piece of real estate. In all cases, bridge loans help companies stay focused on growth activities as well as long-term goals instead of stressing over short-term cash.
