Corporate Finance
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Knowing how to finance your business can make all the difference. Often entrepreneurs explore the idea of taking out a loan to finance an acquisition, cover unexpected costs, fund a transition, etc. Our team of trusted advisors have been helping entrepreneurs make smart finance decisions for decades. Â
As part of a corporate finance engagement, we are prepared to assist in the creation of presentations and negotiations with potential funding sources by utilizing sources, including banks, investors, and a variety of asset-based lenders. We also serve as a source of funding through Cathedral Finance.
Potential Sources of Funding:
- Traditional Loans (Banks, SBA, etc.)
- Bridge Loans (we fund through Cathedral Finance)
- Invoice Financing
- Asset-Based LendingÂ
What is a Bridge Loan?
A bridge loan provides short-term and temporary financing for businesses that are in need of funding due to transitional periods such as rapid growth, changes in leadership, or any other turnaround. Our bridge loans typically range anywhere from $100,000-$1,000,000, depending on the needs of the business, with repayment periods anywhere from 90 days to two years.
These bridge loans must be fully secured by an identifiable tangible piece of collateral such as a specific receivable, inventory, equipment, real estate, intellectual property, company stock, or substantial third-party guarantors. Business owners are typically required to personally guarantee the bridge loan obligation to Cathedral Finance, as well as maintain a consulting relationship with Cathedral Consulting so long as any loan remains outstanding. Customary financial reporting requirements and loan covenants may also apply. Pricing varies depending on the situation and terms but typically ranges between 14% - 20% inclusive of fees and interest.
The necessity for a bridge loan can come about from any number of unforeseen or transitional events that are familiar to anybody who has started their own business. For small to medium size businesses, working capital is essential to daily business operations and can often be lacking at the most critical points in time. Additionally, there are some instances where a business would be approved for a traditional loan by their bank, but the loan cannot be closed within the needed time frame. Business bridge loans are a temporary short-term solution for businesses, and we essentially "bridge the gap" for you financially until you are able to obtain more traditional long-term funding.
Our team of consultants help businesses flourish across all industries with concentrations in the fields of telecom infrastructure and automotive finance.Â
Who Benefits Most From A Bridge Loan?
Any business in a transitional period can benefit from receiving a bridge loan as a temporary source of capital while they move to a more established form of income. These sorts of businesses can be for investors, business owners, and real estate brokers without the restrictions of traditional lenders.
Business Owners
As a business owner, there is a lot that can be changed to improve the company as a whole, but these changes can come at a costly price. Having a fast and easy solution for transitional costs with short term loans will allow business owners to focus on their expansions and other changes rather than how they will finance these transitions.
Investors
For investors in industries such as real estate, traditional financing for investment properties require a lot more information and proof of tenant payments' history in order to obtain a loan.
Business Refinancing
This is probably one of the most common reasons that people would need a bridge loan. When small businesses don’t meet the requirements, bridge loans provide the capital needed in order to handle short-term liquidity needs. They are designed with the intention of quick financing to businesses that don’t qualify for traditional financing.
There are plenty of industries that go through shifts that require major change and a bridge loan can help make those transitions financially doable. If your business is in need of immediate financing, Cathedral Finance has the answers you need!
A Bridge Loan May Be Your Best Move
When your business is in a vulnerable position financially, a bridge loan could mean all the difference in sustaining during the transitional period of finding a more conventional source of financing.
We want to work with you to ensure that your business does not come to a financial standstill.
To get started, please fill out the form for a no cost, no obligation consultation with one of our finance experts.
“The team at Cathedral delivered when others could only promise. I was more than just another client to them – it was a true investment into a relationship with every reward. They went above and beyond to add value to my business, much more than the actual financing. They have a deep understanding of business reality and base their approach on professional knowledge and integrity. I highly recommend them!”
Ivan Pavlov
President of Radiation Oncology Care at Meridian Park
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Our team of experts is available to help you navigate and choose the right financing solution for your business.
