Many small business owners find themselves struggling in today’s tough economic climate. Finding the financing for critical expenses poses serious challenges for many. Even meeting mortgage obligations can be difficult for business owners struggling to maintain enterprise success. At Socotra Capital, we’re here to help small business owners throughout California meet pressing needs with a wide variety of hard money financing products, including bridge loans.

Understanding Bridge Loans

Much like their name suggests, bridge loans are used to cover gaps between business expenses and available funds. Business owners turn to bridge loans for many reasons. Perhaps you need to pay off a mature note or make improvements to your office. A bridge loan can be used to meet these needs. Because they are equity-based loans, bridge loans are also an ideal solution for business owners who have damaged credit but still desire to build enterprise success.

Is a Bridge Loan Right for You?

Whether or not to use a hard money loan is a serious decision. You’ll need to carefully weigh your business needs and financial obligations before you can decide if a bridge loan is right for you. Remember that hard money loans are especially ideal if:

  • You need financing on a deadline and can’t wait for a traditional lending institution to approve a loan.
  • Your bank has turned you down for financing.
  • Your business or personal credit has suffered but you hold equity in property.

Applying for a Bridge Loan

If you’ve decided that a bridge loan is the best way to meet your business needs, you’ll need to work with an experienced hard money lender to secure financing. Your hard money lender will be responsible for evaluating your application and determining whether or not you qualify for financing. Remember that bridge loans are designed to provide immediate hard money financing, so you can secure one quickly so long as you are prepared for the application process.

Before you speak with a hard money lender, sit down and determine the amount of financing needed to cover your demands. Jot down exactly how the financing will be used so that you can explain your needs to your hard money lender in full. It’s also important that you provide comprehensive information about your equity to your hard money lender. Hard money lenders generally evaluate a potential borrower’s worthiness by evaluating their equity.

The more information you can provide about your holdings, the better your hard money lender will be able to assist you. Remember that hard money lenders specialize in offering alternative financing, so there’s no need to be embarrassed about past credit or foreclosure problems. Be as upfront as possible on your application so that your hard money lender can provide you with an honest answer in very little time.

Working with a Lender You Can Trust

At Socotra Capital, we’re proud to be the hard money lender of choice for small business owners throughout California. We’re proud to provide fast  bridge loan financing to help entrepreneurs meet pressing enterprise obligations. Remember that there’s no substitute for experience when it comes to using hard money loans.