By Brad MacLiver
Authorship and profile at Google
With the changes in the MT pharmacy industry independent drug store owners, small and regionalMontana
Bridge Loans are one short-term financing option that can be while either waiting for permanent financing or waiting for the next stage of financing to be obtained. Bridge loans can be used to provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. Permanent financing is typically used to pay back or "take out" the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another characteristic of bridge loans is that the process usually requires less documentation than conventional financing. Bridge loan lenders don’t usually have the same government regulations to adhere to, so they tend to have more flexibility in their lending criteria and the documentation they require. However, less documentation does not mean they won’t perform due diligence to have a comfort level with the transaction before they fund.
Examples of using Bridge Loans in Montana Pharmacy Transactions:
1. An independent pharmacy owner learns of health issues and decides to quickly sell the family owned MT pharmacy to an employee or local competitor. Traditional financing for theMontana
2. A small pharmacy chain needs $1 million to expand their business. The chain has 3 new equity investors who will be investing in the firm over the next 6 months, but at different intervals. However, the business has opportunities which require action sooner than 6 months. The quick closing bridge loan allows theMontana
3. AMontana
4. A pharmacy group developing new Montana pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy inMontana
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit theMontana
When there are business opportunities, buying pharmacies, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regardingMontana
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
It is important to note that the types of deals that require bridge loans may be considered speculative in nature. They also tend to have higher risk factors, which in turns means many banks do not offer bridge loans. Because banks must meet government regulations, they need to justify their lending practices. Riskier bridge loans do not usually meet lending parameters of many banks. The majority of bridge loans tend to come from private investment firms, and it is best to consult a company that has access to a number of funding sources who provide these bridge loans.
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Authorship and profile at Google
With the changes in the MT pharmacy industry independent drug store owners, small and regional
Bridge Loans are one short-term financing option that can be while either waiting for permanent financing or waiting for the next stage of financing to be obtained. Bridge loans can be used to provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. Permanent financing is typically used to pay back or "take out" the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another characteristic of bridge loans is that the process usually requires less documentation than conventional financing. Bridge loan lenders don’t usually have the same government regulations to adhere to, so they tend to have more flexibility in their lending criteria and the documentation they require. However, less documentation does not mean they won’t perform due diligence to have a comfort level with the transaction before they fund.
Examples of using Bridge Loans in Montana Pharmacy Transactions:
1. An independent pharmacy owner learns of health issues and decides to quickly sell the family owned MT pharmacy to an employee or local competitor. Traditional financing for the
2. A small pharmacy chain needs $1 million to expand their business. The chain has 3 new equity investors who will be investing in the firm over the next 6 months, but at different intervals. However, the business has opportunities which require action sooner than 6 months. The quick closing bridge loan allows the
3. A
4. A pharmacy group developing new Montana pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy in
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit the
When there are business opportunities, buying pharmacies, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regarding
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
It is important to note that the types of deals that require bridge loans may be considered speculative in nature. They also tend to have higher risk factors, which in turns means many banks do not offer bridge loans. Because banks must meet government regulations, they need to justify their lending practices. Riskier bridge loans do not usually meet lending parameters of many banks. The majority of bridge loans tend to come from private investment firms, and it is best to consult a company that has access to a number of funding sources who provide these bridge loans.
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