Top 5 Advantages Of SBA Bridge Loan Program

| September 26, 2013


What Is An SBA Loan?

An SBA loan or Small Business Administration is a national project which provides several programs for most business owners. The programs are mostly designed to help businesses attain debt financing. It also provides for loan guarantees for its lending partners thus eliminating the risks involved in a lending partner. It also does not make the loans directly. The SBA has several loan guarantee programs which are structured differently. There are specific guidelines established by the SBA.

SBA Bridge Loan Program

RapidAdvance, an innovative business financing company came up with the SBA Bridge Loan Program. It exists to assist in resolving problems that may come upon during the entire SBA application and approval process. Once the bank has approved the SBA loan request, and obtained an SBA guarantee, the SBA guarantee authorization may require specifications be met prior to funding the loan. Some specifications may include but are not limited to:

  1. Paying past due taxes
  2. Paying vendors and suppliers
  3. Satisfying a judgment so that a lien can be released.

The SBA Bridge Loan Program allows the business owner to access capital to solve outstanding issues and receive a reduced payoff when the SBA loan is closed.  This program, when used efficiently, can also act as a financing for the day-to-day activities of the management while waiting for the SBA process to finish. Moreover, this company has a through lender network which can give the business owner better chances of having their application approved. Moreover, this program can also compliment your SBA Loan to help you finance your business. If, however, you are unable to obtain an SBA Loan, then this bridge program can be used as your financing instead.

Top 5 Advantages Of SBA Bridge Loan Program

1.       The financing is calculated from gross sales and business cash flow

There are no fixed monthly payments for this program. A review is conducted on your gross sales so that you can pay them enough without exhausting your resources. You only pay for how much you earn.

2.       Fixed automated repayment allows for simple repayment and cash flow management.

This repayment scheme provides for simplicity of the system and accuracy of payments. No need to worry about not having your payment posted on time, because it is always online all the time.

3.       Fixed assets are not used as collateral.

When in dire need of cash for capital, some business owners tend to use their fixed assets as collaterals. However, when the business does not do well, the fixed assets are gone with it. This is a situation that no business owner would like to be put into.

4.       Allows business owners to replenish the cash reserves which were depleted by the costs associated with the SBA process.

Filing for the SBA can also be costly, taking into consideration the amount of paperwork that need to be done and the time needed to be allotted. Good thing, with this program, the cash reserves which were used to support the application may be replenished while the business strives to succeed.

5.       Minimal paper work

Finding capital for the business is already a stressful situation, even more so accomplishing paper work. This program provides the amount needed to continue the business minus the flurry of papers that need to be submitted.

Author Bio

Loren is a financial consultant working with a Mortgage Firm. She is an avid Twitter user who tweets regularly. Recently she read on twitter about rapid advance reviews and how they help business grow when they are stuck financially. She is now following them on twitter.



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Category: Business

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