What is Bridge Funding?
Bridge funding, also known as a bridge loan or bridge financing, offers a quick and easy solution for businesses that require immediate capital. Essentially, it's a short-term loan that's taken while pending the arrangement and/or approval of a larger loan. Bridge funding allows individuals, companies, and entrepreneurs to acquire much-needed capital so they can meet their immediate financial obligations.
Bridge Financing is Ideal For:
- Immediate Capital
- Short Approval Times
- Bridging Gaps between Larger Loans
- Commercial Real Estate Transactions
The Intrepid Private Capital Group is an industry leader in providing business funding solutions. We screen projects for a remarkable number of private funding sources around the world, ALL of which are seeking sensible projects with solid profit potential... and they are lending! Get started today and let Intrepid Private Capital Group be your partner in making the right financial decisions.
How does a Bridge Loan Work?
Bridge funding is most commonly used in commercial real estate transactions. When an investor needs immediate capital to close on a property, he or she may seek a bridge loan. It's a short-term financing opportunity to secure immediate capital for real estate purchases. The bridge loan is typically paid back after the property sold. That doesn't necessarily mean that all bridge loans are used for real estate. On the contrary, they can be used for a wide range of applications.
The Difference between Bridge Funding and Hard Money Loans
Some people assume that bridge loans and hard money loans are the same as bridge funding. While they are both short-term financing options, there's one key difference that separates the two: a bridge loan gaps the bridge between longer, larger loans, whereas a hard money loan does not.
Bridge Funding Risks
As with most loans, there are risks associated with bridge funding. Because it's used as a temporary bridge between larger funding options, borrowers must use their due diligence to determine whether or not they can pay it back.
How to Apply for Bridge Funding?
For more information on obtaining bridge loans or any questions regarding our business funding process, feel free to Contact Us
. To begin a funding application, simply follow the "Apply Now
" link to get started. Let Intrepid Private Capital Group help you get the private capital that you need for your business or project.
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Advantages of Bridge Funding
The greatest benefit of bridge funding is its short approval times. With other forms of financing, such as traditional small business bank loans, businesses must wait weeks or even months to acquire capital. In comparison, bridge loans can be acquired in just days. If you need capital now and don't have the time to wait for a traditional loan, bridge funding may be the right choice for you.
Bridge Funding Disadvantages
There are also some disadvantages to bridge funding, including above-average interest rates, closing costs and points. According to TruthAboutMortgage, bridge loans carry an interest rate that can be 2% above the average fixed-rate loan. Keep in mind that this is only an example, so don't assume that you will have the same interest rate for your bridge loan.
Contact Us for Additional Information
Feel free to contact us with any questions you have. Our friendly staff is ready to help you get your project off the ground!