Bridge Loan Term & Length
Bridge loans are designed to cover a temporary gap in financing. As such, they are expected to be repaid relatively quickly. Most often they are closed out with the funds that arrive with permanent financing and long term loans.
Our Colorado bridge loan specialists focus on creating the right package for your unique situation. With that goal in mind, most of our bridge loans and gap financing has a term or length of 3 years or less. This allows your business to complete renovations or construction, secure tenants, and then apply for your ideal permanent financing once you are in a position to be approved.
Bridge Loans Colorado Rates & Approval
Bridge loans are designed for speed of financing. With shorter terms, these loans often require collateral and have rates that are a few points higher than traditional, long term commercial loans. But bridge loans are great at what they are designed for – overcoming a short term gap in financing and cash flow.
The application, approval and funding process is much faster than traditional loans.This ensures that you can overcome your gap in the next week, rather than waiting the months that would be required for permanent or long term financing. Our team works with you to meet your schedule, and get you the absolute best rates available while doing so. (For more information on how bridge loans compare with traditional financing, check out Investopedia’s article on bridge loans.)
Bridge: Working Capital Until Equity Arrives
Our bridge loan Colorado based specialists find that the most common usage for a bridge loan is providing working capital until equity financing arrives. However, bridge loans may also be use in the real estate investment world, often covering the interim between the purchase of one property and the sale of another.
A more common usage, however, is covering working capital during an expansion or a round of equity funding. As a company grows, bridge loans allow it to cover payroll, rent, and operating costs while it is working to secure permanent financing. This long term financing may come for an equity investment secured for a growing company, or a newly acquired piece of real estate. In all cases, bridge loans in Denver and nationwide help companies to stay focused on growth activities and long term goals instead of stressing over short term cash.