What is a Bridge Loan?
A bridge loan is a short term loan that helps bridge the gap between customer payments. If you receive payments at the beginning and end of a project, you likely need financing in-between to pay employees, purchase inventory, and bid on other projects.
How to Use Bridge Financing:
- Purchase inventory and materials
- 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!
There are many service businesses that can benefit from bridge financing. For instance, you might own a landscaping service, HVAC business, or florist shop. Businesses in these industries often get paid at the beginning and end of a job. So, if this applies to your service business, consider bridge financing!
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.
You'll 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.
Your company can bid on additional jobs:
Have big dreams of expanding your business? If so, you can use your bridge loan to big on more projects. This will help ensure that when one project ends, you have your next project lined up.
Ensure that your employees are paid on-time:
If you can't meet payroll deadlines, 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!
Be able to afford last-minute expenses:
Typically, you 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.