Bridge Loan Funding is usually provided by one investor that is in for a short term investment of less than one year and is usually accomplished for a specific purpose.  For instance, a larger investor may be in the process of funding two (2) million dollars, but that process may take a month or more to close the transaction.

If your company is looking for Bridge Loan Funding in addition to a larger financing, we can help. Use this form to Submit a Funding Request.  We are sorry we cannot help start-ups, but if you are looking for growth capital, acquisition funding, a public listing through a Direct Private Offering or Reverse Merger, then please contact us by submitting a request using the above link.

The investor providing the short term financing agrees to fund $100,000 to meet the company's needs while it is in the process of working on documentation and finalizing the terms of the larger funding.

Since the investor that is providing the bridge loan is theoretically taking more risk, because the larger financing may fall through for one reason or another, this investor usually gets very good terms. These terms may include a high interest rate and an equity kicker of some warrants and/or common stock.

The larger investor if and when it closes the larger funding may simply payoff the bridge loan to get it out of the way, but the smaller investor will get to keep the equity kicker piece.  Sometimes the larger investor doesn't pay off the bridge loan, especially if the larger investor knows the smaller investor and doesn't feel that small investment will interfere with the larger funding.

If you are looking for some additional information and tips click here - Bridge Loan Funding.