Business Bridge Loans Only guide to get you funding

Business bridge loans what are they really

Bridge loans for business, are a quick capital infusion in order to cover payroll, inventory, expenses, or any other costs that may come up. Typically these are used while waiting for longer term financing to be approved. To get right down to it, bridge loans are more expensive types of financing that you use when you don’t have access to long term financing at that given moment. For example. Say you are waiting for a term loan or SBA loan to get approved, but you need capital today. A good option would be a merchant cash advance. In fact, let me be extremely clear. Regardless of what you read, there is only one type of bridge loan that is not secured to real estate and that is a merchant cash advance. However, you can use other loan products as business bridge loans. If you have equipment, you can pull cash out on your equipment or inventory. This Is called a asset based loan. Or you can pull money out of your real estate via a commercial cash out. Other than those options if you want a quick, short-term loan to cover expenses and costs. Your best option for a business bridge loan would be merchant cash advance.

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How to qualify for a bridge loan

To secure a short term business bridge loan, you are going to need the following documents.

1.???? 3 most recent months banking statements (4 months if you are in California or New York)

2.???? Bridge loan application Or lender application filled out (you will get this from your lender)??????????

3.???? Credit report (your lender will pull this not you)

4.???? Debt Schedule (this is a simple word document breaking down your current debt by type, creditor, balance, & payment)

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Pro tip

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?Check the deposits on your last 3 months banking statements and if you see they look consistent then you are good to go. If you see major inconsistency, then you might want to send in your last 2 years business and personal tax returns as well.

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How to qualify for a bigger business bridge loan

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You are going to be sending in the last 3 or 4 months business tax returns. And the underwriter is going to be mainly looking at your deposits and withdrawals. With that in mind naturally you will have the best chance at qualifying for the most amount of money if you apply for a bridge loan during your months with the greatest amount of deposits. Let’s say that you know you will have some expenses coming up in July. But your business is doing the best in April, May, & June. Then you should apply for a business bridge loan at the end of June so you can qualify for the most amount of money.

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Best Strategies to leverage bridge loans for your business

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Assuming you need cash right away and cannot wait. Then your best option to get your business a short term bridge loan will be a merchant cash advance. If you have time to spare, then you may want to look at a term loan or line of credit to help.

If you have already gotten a bridge loan that is short term and high interest. Then you are going to want to either pay it down aggressively or convert it to long term.

You can convert this to a long term loan by applying for either a term loan or SBA loan which will take a few months to get approved. But once approved you can negotiate an early pay off for your business bridge loan, then you will be left with a nice monthly payment. I touch more on this in my merchant cash advance break down.

The main points to remember when looking for a business bridge loan is the following.

1.???? Apply during your months with the greatest deposits.

2.???? Have 3-4 months business banking statements ready

3.???? If you go with a short term option immediately apply for a long term loan after or pay it off aggressively

4.???? If you are not in a big rush look for a term loan or line of credit

5.???? If you have collateral try and use inventory or equipment to secure the loan and get better rates & terms

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