Here is something that can help your business during the COVID-19 crisis – bridging finance!
Bridging finance or a bridge loan is a short-term loan offered by commercial banks that allow your company to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates and are usually backed by some form of collateral, such as real estate or inventory. The lenders can customise these loans for many different situations.
Bridging loans can be arranged within a matter of hours with funds released within 72 hours although usually this takes a bit longer and can take a couple of weeks.
What can it be used for:
· Helps you manage your businesses cash flow.
· Finance inventory during peak periods.
· Use as bridging finance for debtor and creditor payments.
· 6 months' bank statements;
· Signed financial information (annual financial statements and year-to-date management accounts);
· A financial forecast (cash flow statements, income statements and balance sheets);
· A business plan to demonstrate the viability and sustainability of the business; and
· Documents required to open a Business Account (if you are applying to a commercial bank who you do not have an account with).