Can Payroll Financing Be Used For A Business Bridge Loan
You may have heard of payroll financing but still have questions about it, such as whether it can be used for a business bridge loan. These types of loans have become a crucial part of doing business today so it is important to know the best ways to obtain one.
When you are already paying off one loan but still need cash, you may have to apply for an additional loan. Still, it may take some time before you receive your money from the second loan. In this instance, you may have to get a business bridge loan to cover the gap. Find out why the payroll financing option may be your best choice.
How Payroll Financing Can Be Used for Business Bridge Funding
A cash advance company, like Financing Solutions (www.fundmypayroll.com) can provide you with fast business funding in as little as 48 hours. All it takes to apply is a 15 minute phone interview and you can receive an answer regarding your approval the same day.
More than 90 percent of those that apply for quick business funding from Financing Solutions are approved. As long as you have a successful company that has been in operation for at least two years, you may be eligible for up to 100,000 in instant business financing.
This is an ideal solution for companies that need extra cash to tide them over until a long term funding loan becomes available. The cash you receive from a payroll financing company can be used for anything, such as paying business taxes, building a working capital fund or to take advantage of a profitable opportunity for growth, as well as for making payroll.
Why You Might Need a Business Bridge Loan
In business, there are many things you have to get over, like a slow sales period, a financial setback or a temporary emergency that briefly knocks the wind out of your sails. There is also the space between your current circumstances and where you hope to be in the near future. To traverse these gaps typically requires some sort of instant business financing, such as a loan.
Since a business bridge loan is typically easier to get, it can be a way out for companies that just need a bit of extra time on their side. Usually, it is used between paying off one loan and securing more long-term funding to grow your business or take advantage of a profitable opportunity.
What Are the Pros and Cons for a Business Bridge Loan?
You may be able to find a greater number of lenders willing to offer a business bridge loan. It is generally understood that this is a short term business financing option so qualifications and criteria tend to be more relaxed than those of a traditional small business loan.
The flexibility of a business bridge loan can be very attractive to a company that is growing or moving quickly. You won’t have to deal with the restrictions and hassles that come with traditional loans, such as a penalty for repaying the loan earlier than expected.
Nevertheless, partly due to the fact that business bridge loans are not long term, you will probably pay a higher interest rate or fees than you would with a regular commercial business loan. For this reason, business bridge loans should never be a major component of your overall business financing strategy.
Business bridge loans have become a very popular method used by companies looking for a reliable, short term funding option. Recently, some businesses have turned to crowd funding to obtain business bridge loans from other business owners, investors and others they don’t know and who are not looking for a stake in their company.
While this may work for some, others might be uncomfortable borrowing money from a group of strangers. It is better to go with one company, run by two serial entrepreneurs who understand the circumstances of small business owners. Like a bridge over troubled water, when you need a link to fast cash right now, Financing Solutions can get you safely across to the other side.