The ABCs on what a bridge loan is, why you should think about getting one and how to do it

"Bridge loans are short-term funds that "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package. Firm owners can go to banks for such a loan if they have a solid cash-flow position and the bank feels comfortable with the level of monthly sales as sufficient to support the loan for 60, 90 or 120 days. The bridge can also be provided by a factor, a firm that agrees to provide front-end cash on specific accounts receivable that meet certain credit requirements on the part of the payer. The factor will typically provide 50 to 70 percent of the face value of the invoices upfront, and the balance of the funds will be paid to the entrepreneur at the collection date on the receivables. However, the factor takes a hefty fee or interest charge for this bridge."

Click Here To Read More!