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(844) 860-2288
(844) 860-2288
The benefits of a bridge loan are designed for businesses that are seeking short-term financing or bridge cash flow gaps. This type of financing is easy to obtain. The funding process is fairly fast and easy. It can take as little as 24 hours while the pre-approval can take just few hours. Bridge loan is a very flexible product and it offers a very high approval rate. It’s an ideal financing source before secure permanent financing. We are going to discuss what are the benefits of a bridge loan below in more depth:
One of the main benefits of a bridge loan is that you can obtain a preapproval within hours. Traditional financing with banks can take up to a month to secure. This makes us look more efficient with a lucrative product. The process is very simple, and financing is very fast. Banks with other traditional lenders ask for 6 months of bank statements, business tax returns, personal tax returns and references while we ask for very little. In order to prequalify and obtain an approval, we ask for 3 months of most recent bank statements along with a signed credit application. Within few hours, you would obtain our credit decision and proceed with funding if approved. Upon funding, we usually ask for a copy of voided check and driver’s license. It’s as simple as renting a car!
The qualification process is extremely easy and straightforward because you don’t need to have a good or perfect credit score. When it comes to this type of financing, we just want to see that you have the will and ability to cover your payments. At Creditfy, we do not judge your ability to pay if you have low revenue. Our representatives work with each business owner regardless of negative business factors. We believe in small businesses and have developed technology that enables us to bypass poor credit and negative attributes. Businesses to use this type of financing to gap their cash flow issues. If you are a new business and have no track record of payment history with any lender, you can depend on Creditfy to obtain financing for your business.
Secure additional work when having enough working capital. Many business owners wait until they collect on receivables or finish their current job before biding out on new work or contracts. The main reason why they wait is due to limited working capital.
With a bridge loan, you can use the funds for any business purpose. Traditional lenders have certain limitations in place for the use of funds. At times, they could decline your application if you are looking to consolidate debt, purchase another business, buyout your business partner, payoff another loan or use the funds for business restructuring. At Creditfy, we believe that you as the business owner know better what to use the funds for. You can use the funding to purchase inventory or supplies, cover payroll, payoff credit card debt or existing loan debt, cover equipment financing payments, pay vendor, pay for real estate purchase, pay for renovations, cover outstanding taxes or rent. Many business owners use the funding to quickly expand their operations by having the required capital to undertake additional work, pay for marketing, extend their receivables or hire new employees.
With a bridge loan, you are not required to take the entire loan amount. You have the freedom to choose how much capital you want to secure at any given point. Why pay interest on the funds that you’ll never use, if you need additional funding you can always ask for more.
A bridge loan is an ideal source of financing because it’s fast and easier to obtain. Many business owners use this type of financing during their slow season to turn their cash flow positive or have enough working capital to get through the season. During peak seasons, owners use a bridge loan to stack up on inventory in order to obtain a large discount when buying in bulk. They also use it for working capital to meet the operating demand.
This type of financing doesn’t require you to put your personal real estate as collateral, unless the use of funds or the transaction itself involves real estate. If the loan is used for business, majority of lenders do not ask for any type of collateral.
Business owners can expense the interest and fees that are associated with financing against their income as a liability. Since liabilities decreases your net income, you can avoid in paying some of the taxes.
A bridge loan is well known to carry higher interest rates than other types of financing. Business owners utilize this type of financing to cover their existing debt obligations like credit cards who also charge high interest rates. Moreover, you can use a prepayment discount to avoid some of the interest and make your cost of capital lower.
Borrowers can benefit from a bridge loan by developing a payment history. Lenders can offer better terms in the future or help your business obtain more permanent financing. Our reputation is to develop long-lasting relationships with our borrowers. With stronger relationship, offer better financing terms. If you paid off your existing debt, you are in a better position to negotiate for better terms. Terms such as low interest, longer and more flexible terms along with lower fees.
A bridge loan might not be the best source of financing because its designed for businesses that are in need of fast and short-term working capital. This type of financing offers benefits that other products cannot provide such as a high approval rate, fast funding and simple funding process. At Creditfy, we understand that businesses succeed if they could tap into fast capital quickly. We have developed a technology that enables us to secure fast funding for our customers in as little as 24 hours, apply when you’re ready!