Business Bridging Loans

Get The Perfect Bridging Finance For Your Business

Most of us have heard of bridging loans for purchasing and selling residential properties. Business Bridging funding operates similarly by offering rapid finance while other company conditions are met for a long term lender.   Our loans are for a period of one month to one year, so you can immediately bridge the gap between today and an event (such as refinance) that will occur in a few months to a year.   So you can use this funding until you have arranged for long-term funds for the business.

Business owners can secure the loan with a property which can be commercial, residential or vacant land. It is best for those borrowers who require funds for a short period and can repay it by refinancing or selling a business asset. However, the interest rates of bridging loans for businesses are usually a little higher compared to other traditional longer-term commercial loans.   

How Can You Use A Business Bridging Loan?

Business bridging funding can help a company in the following ways.

• Property Development

Property developers often have the opportunity to buy a commercial property, renovate the infrastructure and convert it into residential lofts. The developer can apply for bridging funding while waiting for the local council’s approval. Once the project gets approved, bridging funds will make it possible for the developer to buy that property swiftly. You can repay the funds after getting another loan after the project is approved.

• Financial Urgencies

Financial emergencies are another reason why business owners apply for fast business bridging loans. Suppose you have a family business, running smoothly for years. But suddenly, a family member decides to leave it and wants to take their equity share in the company. The other business members can apply for bridging funding to promptly pay the other member out.

• Family Emergencies

A couple can run a business together, but their marriage is sadly not working. In this scenario, one partner might want to remain in the business while the other wants to walk out with their share in the company.  Sometimes a buy-out agreement is reached in the divorce proceedings, and you have to urgently raise the capital to meet the required deadline for settlement.  Again, short-term business bridging loans is extremely helpful in this circumstance. The business owner can slowly repay the bridging loan with the profit from the company, or go for a complete refinance through their bank or mortgage broker..

• Freezing of Funds

Sometimes the funds get frozen or embezzled by a dishonest employee or partner. You can apply for short-term bridging finance to cover the company’s daily expenses while you sell the assets or work of other forms of restructuring.

• Get A Big Contract

Sometimes companies get a big contract from an old or new client. The project might take one month to complete, but the client will pay the invoice after 60 days. In this circumstance, you can use bridging loans for business to cover the material and labor costs till you get the client’s payment.

• Time-Sensitive Opportunities

In the business world, you can come across an opportunity to purchase a competitor’s company. But you have to act rapidly to grab this chance. Since the sale price will be higher than the current business value, you can use a business bridging loan to raise the additional capital to quickly make the purchase.

Advantages of Fast Bridging Loans

There are several benefits of using short-term business bridging loans, including:

• A Quick Way To Raise Additional Capital

If you require extra capital quickly, bridging funds is the ideal solution. The application process is quicker than the other business finances. If you have a bad or below-average credit score, you can get approval for short-term bridging finance by offering a price of real estate as collateral.

• Short Term

Since you have to repay the business bridging loan within a short period, this enables you to save on interest by repaying the loan sooner rather than later.

• Use for Almost Any Business Purpose

You can use bridging funds for various purposes, including investing in the latest equipment, taking advantage of time-sensitive opportunities or buying a commercial property.

Why Select Equity Tap For Bridging Funding?

Most business owners do not want to go to traditional banks or financial institutions for bridging funds. The primary reason for this is slow processing, and a high change of being declined. Equity Tap understands the requirements of small business owners and offers short-term business bridging loans at competitive rates. We support every business owner to grow their company and achieve the targeted goals.

Our company includes transparent pricing with no hidden charges. You can also take advantage of our early payout without any additional penalty or payout fees. In other words, we have made an online application for bridging finance hassle-free and simple. Besides these, other reasons for our popularity include:

• Flexible interest rates starting from 1.99% pm
• Easy processing method
• Faster approval of funds
• Minimum documentation

Documents For Bridging Loan Approval

Below are the lists of the documents that you will require to qualify for a business bridging loan.

• Well-defined exit strategy
• Australian Business Number (ABN)
• Must have a property in your name or your companys name
• Must have suffient equity in that real estate
• The Loan proceeds must be for business use

Need urgent cash for your business? Equity Tap can help you to get a short-term business bridging loan and relieve you from your stress!