A bridge loan works by providing businesses access to a fast influx of working capital while the business attempts to secure permanent financing. This gives businesses access to a lump sum of funds during the gap between applying and getting approved for a long-term loan.

Similar to a small business loan, businesses may benefit from receiving funds in a lump sum with fixed payments and terms. The main difference is that a bridge loan is considered a short-term loan, while a small business loan is typically long-term.

The Block Finance bridge loan calculator lets you select your desired working capital amount, credit score, and monthly sales and see an estimate of what your business may qualify for depending on the information provided. Additional information may be required.

No. Getting a bridge loan is very similar to getting a small business loan. Most business financing companies have requirements that must be met, such as a business bank account, time in business, business revenue, and a valid form of identification to apply for a bridge loan.

A bridge loan can be great for businesses that need quick access to capital while securing a long-term loan. They also offer quick access to capital, flexible payments, and terms ranging from 3 months up to 60 months. *

However, bridge loans are short-term. This might not be the best option for a business looking for a longer-term loan that spans several years. (Learn more about at Block Finance’s long-term small business loans.)

Having low or bad credit does not automatically mean your application for a commercial bridge loan will be denied. Most small business funders consider credit when reviewing applications, however, it’s not the only determining factor. There are many other factors business funders take into consideration when deciding to approve an application, including business revenue, time in business, accounts receivables, and business credit history.

Before applying there are a few things to keep in mind. The first should be the reason why your business needs the loan. You should also consider how much working capital your business needs and the repayment terms you can afford. This will help you navigate whether you need a long-term or short-term loan.

Other things to keep in mind before applying are what your business’ current credit score situation is, how fast your business needs the funds, if your business has been in operation for over two years, or if you have over a year of business bank statements, etc. These will be some of the questions asked during the application process.