Bridge Loan - This refers to funding a company receives to "bridge" the gap
or period of time needed to obtain a larger piece of funding. Usually the larger
subsequent funding comes from another investor, not necessarily the same
investor that provided the bridge funding. Also, usually the terms for each
funding are structured differently.
Reverse Merger Funding helps companies with bridge loan funding, growth capital financing, acquisition funding and more. If your company is an existing
company with at least $5,000,000 in gross revenues use this form to Submit a Request. You
will get a prompt response from us usually within two days. Our funding experience, relationships on Wall Street, contacts with hedge funds and connections with asset based lenders are first class and well known in the industry.
Some investors specialize in providing bridge loan financing. They can even
introduce a company to a larger investor or brokerage firm that they partner
with who can help the company structure and line-up a larger financing, whether
it be debt, equity or an asset based loan.
Make sure your management team has the subsequent financing round lined up.
Although there are no guarantees that the subsequent round will close on time,
try to take as much of the guess work out of the situation as possible. The two
funding sources (the bridge funder and subsequent round funder) are going to
want to talk to each other to make sure both are board with the particular
funding they will be providing. They are going to want to know terms of each
other's funding and just as importantly the timing of those fundings.
Always look for a bridge loan funder that can help you with subsequent
financing rounds so you can kill two birds with one stone. It is always best to
find a good financing partner that is well-experienced when it comes to funding
companies. Look for a funder that can either provide you with funding for
subsequent rounds or can get you that second and third round of funding through
its partners or affiliates, without your management team having to start the
process all over again. Remember, it all comes down to relationships.
Build important relationships early on so your management team doesn't have
to spend as much time on tracking down investors in the future. It can sometimes
take more time and effort raising capital than running the business itself.
Click this link for more information on Bridge Loan Funding.