When you or your business need a short-term cash infusion, you have options.
Bridge financing offers a way for both commercial entities and private individuals to handle a shortage of working capital.
Read on to learn more about this specialized form money lending.
Think of it as a way to financially get from here to there.
Private individuals can utilize bridge financing as well.
Residential bridge loans can work in the opposite direction, too.
Someone looking to buy a new home can borrow money against that property.
The 3 Types of Bridge Financing
Bridge financing is sorted into three categories.
Which route you pursue depends on a variety of factors.
For companies in particular, the choice of financing largely depends on how dire its present financial situation is.
Both corporate entities and private individuals may pursue bridge loans.
For example, house flippers often pursueprivate money loans Californiain order to fund their projects.
These are typically employed to protect the person, firm or institution extending the loan.
As with any throw in of support, there are pros and cons to bridge financing.
