Insight Ten - When is a bridge loan right for me?

Last time we discussed what is meant by a bridge loan, and the requirements for this type of asset/equity-based, short term loan. To make this more understandable, I thought I could jot down some of the situations where we’ve used bridge loans to assist our clients.

  • For business acquisitions or mergers
  • To take advantage of bargain priced commercial property
  • When capital is needed to satisfy taxes or pay fees
  • To stabilize a company in a temporary cash crunch
  • To sustain the business until a permanent solution can be secured
  • To fend off business buyout, hostile takeover
  • When bank financing is not available due to credit problems
  • To save commercial property from foreclosure
  • To manage debt, appease creditors during bankruptcy restructure

Although this not an exhaustive list it gives you a general scope of situations where a bridge loan may be the most appropriate solution.

Up next: Information you will need to provide a commercial lender – Part I.