You may need bridge loans if you are currently wasting your time waiting for your long-term financing to go through. Do you want to get your business started right now, but are you at the mercy of the lenders, who are taking their time preparing everything? You know that the loan is going to go through eventually, but you do not know when and you cannot wait any longer. A bridge loan can help get you through until you get your full financing so that you do not have to spend any more time waiting, not bringing in any income.
After you get your long-term financing, you can simply pay off the bridge loan and then move forward with your standard monthly payments. You do not have to deal with having two loans at once. The larger loan should be set up to pay for the bridge loan and your other needs. However, this is usually how it naturally works. You used the bride loan to buy equipment or buildings to get your business started, which is what you wanted to use your financing for in the first place. You now do not have to spend your main loan on those same things, despite the fact that you planned them into your budget, so you will have plenty of extra for paying off bridge loans.
There is nothing more frustrating for a potential business owner than watching both time and profit go to waste just because the loan is taking too long to go through. Wouldn’t you rather get started on your business today? Don’t you want to feel like you are moving forward and growing closer to success? If so, it might be time for you to look into getting bridge loans to use to start up your business.