What is a Bridge Loan?
A Bridge loan is financing that helps bridge the gap between payments. If your business is paid at the beginning and end of a job, you likely need financing in-between compensations to pay employees, purchase inventory, and bid on other projects. Bridge loans can be used in the interim, to ensure that your business has enough cash flow to finish a job. Many businesses rely on bridge financing to operate; and your business could benefit too from this option!
How to Use Bridge Financing:
- Purchase inventory
- Pay for equipment repairs
- Meet payroll
- Update necessary technologies
- Bid on multiple projects
- Have cash for emergency costs
As a construction business owner, you’re accustomed to bidding on projects in which you get paid at the beginning and end of the job. Once you receive a bridge loan, you can pay your employees and afford necessary tools. This will make building your business a breeze!
When running your business, you have to manufacture products for your clients. To fill their orders, you may need bridge financing to remain operational. Using your bridge loan, you can fill orders for multiple customers at once, pay your employees, and purchase necessary materials.
Have money to complete projects:
If you get paid at the beginning of the job, that might not be enough money to last you until the project is finished. With a bridge loan, you can use this financing for whatever costs are needed throughout the project.
Be able to bid on additional jobs:
Have big dreams of expanding your business? If so, then a bridge loan will enable you to consistently bid on more projects while your team is working on current jobs. This will help ensure that when one project ends, you have your next project lined up.
Pay your employees on-time:
If you are unable to meet payroll, your employees will look for new opportunities. This could put your business’s future will be at risk. Receive bridge financing, and you won’t have to worry about this!
Afford last-minute expenses:
Unfortunately, you typically can’t predict equipment breaking, a need for more inventory, or other sudden business costs. Having a bridge loan will bring your business security; you’ll have additional financing for emergency expenses.