We like to say a bridging loan can ‘help plug the gap’. But it can do so much more for your business. A bridging loan, or bridging finance, is most often associated with home loans and buying a residential property.
A bridging loan, or bridging finance, is most often associated with home loans and buying a residential property. But there are moments in the lives of many small to medium business owners when money is needed. And it’s needed fast. That’s when business bridging loan finance could be just what you need. Not familiar with business bridging finance? Let’s take a look at what a bridging loan is, why you may need it, and, most importantly, how do you get your hands on this money?
What is a bridging loan?
A bridging loan is a short-term business loan. A business owner can use the money for a variety of reasons including a short-term cash flow issue (happens to the best of us) or even to take advantage of a significant investment opportunity.
Because sometimes, when you’re running a thriving successful business, you don’t always have the time to travel down the more traditional finance routes. Or that traditional lending path is more like a meandering Sunday afternoon stroll when you need a brisk, downhill gallop.
All the astute bookkeeping, shrewd accounting, and financial apps in the world can’t shield your business from a non-paying supplier or have you financially prepped for a once-in-a-lifetime investment opportunity.
Why would my business need business bridging finance?
Cash flow
Cash flow problems can bring even the most successful business to a grinding halt. It doesn’t matter if you’re the local sparky or a big-name real estate developer, a non-payer somewhere in your supply chain can quickly cripple you.
There’ll always be times, such as during a global pandemic, when many a business has already blown through their ‘buffer’. And as much as they want, can’t pay their bills. Not to mention, if you’re a business that can’t quite manage to pay some of your short-term expenses, you want to get it all sorted ASAP.
An investment opportunity
The chance to buy real estate, commercial property, or even some business equipment pops up, but you need to move fast. And traditional lenders move at glacial speeds. When the window of opportunity opens, you need to act quickly before it slams shut again.With our loans starting from as little as $20,000 and repayment options from just one month, you can borrow money for just about anything.
No-go with the big banks
Let’s face it, there are lots of reasons why a small business would choose not to deal with a big bank or why the big bank would decline finance to a small business. And we get that. But we also get that a financial hiccup, like a short-term cash flow issue or a lack of documentation, doesn’t mean that a business can’t properly service a loan.
How much can I borrow?
At Strive, you can build your own loan. We’ve even got a handy online tool to help you get started.
You can borrow anything from $20,000 to $3,000,000 with repayments terms between one month and 36 months (3 years). This makes our loans super attractive to just about any business.
And did we mention we move fast? Super-fast. With a commitment to funding loans within 24 hours of approval, seizing the moment takes on a whole new meaning. If you’d like to know more, try our loan builder today.
There is a lot of stigma attached to short term lending. And with good reason in some cases. But, the reality is that almost every business at some stage will need access to finance – and that’s not something to be ashamed of. Short term finance can help businesses react to changing situations or take advantage of new opportunities.
When it comes to business, cashflow is critical to success. This means having access to cash when you need it to buy stock, pay employees and cover regular bills and expenses. That’s why a small business experiencing cashflow issues – no matter how temporary – can quickly become a big problem. But what if you have the cash, it’s just tied up in your home? That’s an easy fix – you can apply for a short term loan secured against a property.
In other words, you can take out a second mortgage on your home.