Bridging loans do cover financial shortages. Usually, such loans are
offered to qualified borrowers for repayment within 1 to 3 months,
though in some cases can be offered up to 3 years.
Such type of loans is a vital tool when a business has a cash flow
shortage or seeks to make an investment but lacks the financial
resources to do so.
Generally speaking, bridge loans can be of great help to many businesses
in the short-term but they always come with a higher interest rates and
sufficient collateral due to their short term.
Advantages of bridge loans:
loans are used by borrowers who wish to use the proceeds from a sal
Can be written, approved and disbursed quickly
loans assist in closing many real estate purchases deals and assist
in initial public offering
loans can be turned into a regular mortgage by the same lender