Startup Terms Glossary
What is Bridge Financing?
Bridge financing allows startups to cover their short-term costs with a loan. Like its name, bridge financing bridges the gap between cash flow shortages and the returns of long-term investments, assets, or revenues. Bridge financing can be a significant lifeline for startups when they need an immediate cash injection.
Bridge Financing Examples
Examples of when startups use bridge financing include:
- Example 1. Meeting company payroll for the next three months
- Example 2. Obtaining capital assets that generate revenues
- Example 3. Purchasing office, warehouse, and retail space
- Example 4. Paying on existing loans with a higher interest rate
- Example 5. Making balloon loan payments that cause expenses to increase
Here is an article that goes further into Bridge Financing.
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Norman Romney is an attorney and professional engineer with over 35 years of experience in the engineering, construction, and real estate industries. He is a seasoned transactional lawyer experienced in the review, negotiation, drafting and analysis of commercial contracts, including: business asset purchase agreements, partnership buy-out agreements, non-disclosure/confidentiality agreements, commercial leases, cease-desist letters, payment demand letters, construction contracts, consulting agreements and many more. He is also experienced in the preparation and review of construction industry standard contract forms including AIA documents, EJCDC documents and FIDIC international construction industry forms. Norman’s practice has included serving a General Counsel for a large non-profit. He also represented and assisted clients in the resolution of business contract disputes. He is experienced in many forms of alternative dispute resolution such as mediation, arbitration and third-party neutrals. His clients include large and small businesses, entrepreneurs, non-profits and freelancers. He is devoted to all his clients and seeks to provide timely, efficient and cost-effective legal services.
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