Bridge Loan Financing Bridge loan financingis an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing which is expected to be paid back - generally within the range of 6 to 36 months - once the borrower obtains more permanent financing. Bridge loan financing is important for not missing opportunities when they may arise. It is basically used as transitional financing until your business can find a long-term and cheaper type of financing. Usually bridge loan financing is used in commercial real estate to quickly close deals, rescue a property from foreclosure, and many other purposes. If a company sells a property which they will not receive payment for in a few months, they can still take advantage of an opportunity for a new property to be purchased by using bridge loan financing. The business can repay the bridge loan as soon as they receive payment for their initial sale of property.
Expanding your business? Restructuring? Sudden investment opportunity?
Acquiring property? Need funding for a merger?
Bridge loans in corporate finance are sometimes called "gap financing", and used to cover the time between redemption of one bond issue and its replacement by a new issue. They can also be operating loans for periods between LOI and acquisition, or quiet period and IPO.
Among the most active bridge loan lenders in the country, Liberty Capital will customize a bridge loan package to meet your business precise needs. General Bridge Loan Guidelines
Loans typically range between $100,000 to $20,000,000.
Acceptable collateral includes real estate, publicly traded stock, machinery and equipment, royalties, and accounts receivable.
Terms can range from 90 days to 36 months.
All loans are based on a Loan-to-Value Ratio that?s up to 60% of the quick-sale value of the collateral, with raw land and empty buildings limited to less.
Bank workouts, foreclosures, bankruptcies, purchases and bankruptcy financing are all acceptable, as are other kinds of complex funding.
Simply call and tell us what you need. Generally, we will tell you immediately if we think we can help. The end result is that you get the service you want, the funding you need, when you need it.