Almost every business needs a little help every now and again. If you’re having trouble meeting your financial obligations in the short term, a bridging loan could be ideal for your purposes.
And as we’ll discuss, a bridging loan isn’t just a good thing to consider if your business is in dire financial straits – a company experiencing robust financial growth might be able to make use of a short term cash injection in order to expand or invest.
You might not have the best impression of short-term loans if you’ve heard about the kinds of lenders who typically advertise on daytime television. Plans targeted at businesses rather than individuals however, don’t compare – a professional bridging loan lender will arrange with you an equitable and reasonable deal in which you know upfront exactly what you’ll owe and over how long.
So how could a loan make all the difference in your firm?
Short term loans marketed to individuals often term themselves ‘payday loans’, meaning they’re designed to tide you over until an expected amount of money comes in.
We’re don’t much like those lenders, but the idea of borrowing money when you know exactly how much you’ll be getting and when is a sound one.
If you receive payment from many of your clients on the same day, for instance, you can be sure that you’ll be getting a cash injection at that time. It should therefore be safe to borrow to pay expenditures immediately before that date. Some commercial bridging loan providers can lend for as little as a day, and transfer the money to you on the day of your claim, so you’ll almost certainly find a deal that makes sense for you.
You might also consider arranging to borrow money if you’re eyeing stock or other form of investment in a company whose value you are sure is going nowhere but up.
Or you may be thinking it’s time to expand and would like to cover the purchase and refurbishment of new premises before it becomes profitable.
Whether your company has good growth or is simply holding on for a stronger business plan – countless business owners have reaped the benefits of short-term loans.
Basically, if you’re reasonably sure that whatever you spend the money on will reap dividends at a future time, a carefully-negotiated loan could be the thing to really make your company thrive.