"Smart" Bridge Loans for Entrepreneurs with Momentum
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About Cathedral Finance
Cathedral Finance provides bridge loans for businesses typically ranging between $1MM - $20MM in annual revenues. We provide short-term loans with flexible terms not readily available from traditional banks. Established businesses and entrepreneurs with momentum come to us when they need capital during a season of transition or opportunity.
The bridge loans we offer are intended to provide a business leader with sufficient time to seize an opportunity, achieve an asset sale, execute a corporate liquidity or equity event, or secure a refinance with a more traditional lender. In some instances, the loans are amortized to be repaid by improved cash flow. In addition to financial support, upon request, Cathedral Finance utilizes the corporate staff, expertise and infrastructure of Cathedral Consulting to provide strategy and support to our borrowers.
What is a Bridge Loan?
A bridge loan provides short-term and temporary financing for businesses that are in need of funding due to transitional periods such as rapid growth, changes in leadership, or any other turnaround. Our bridge loans typically range anywhere from $100,000-$1,000,000, depending on the needs of the business, with repayment periods anywhere from 90 days to two years.
These bridge loans must be fully secured by an identifiable tangible piece of collateral such as a specific receivable, inventory, equipment, real estate, intellectual property, company stock, or substantial third-party guarantors. Business owners are typically required to personally guarantee the bridge loan obligation to Cathedral Finance, as well as maintain a consulting relationship with Cathedral Consulting so long as any loan remains outstanding. Customary financial reporting requirements and loan covenants may also apply. Pricing varies depending on the situation and terms but typically ranges between 14% - 20% inclusive of fees and interest.
The necessity for a bridge loan can come about from any number of unforeseen or transitional events that are familiar to anybody who has started their own business. For small to medium size businesses, working capital is essential to daily business operations and can often be lacking at the most critical points in time. Additionally, there are some instances where a business would be approved for a traditional loan by their bank, but the loan cannot be closed within the needed time frame. Business bridge loans are a temporary short-term solution for businesses, and we essentially "bridge the gap" for you financially until you are able to obtain more traditional long-term funding.
Our team of consultants help businesses flourish across all industries with concentrations in the fields of telecom infrastructure and automotive finance.
Who Benefits Most From A Bridge Loan?
Any business in a transitional period can benefit from receiving a bridge loan as a temporary source of capital while they move to a more established form of income. These sorts of businesses can be for investors, business owners, and real estate brokers without the restrictions of traditional lenders.
As a business owner, there is a lot that can be changed to improve the company as a whole, but these changes can come at a costly price. Having a fast and easy solution for transitional costs with short term loans will allow business owners to focus on their expansions and other changes rather than how they will finance these transitions.
For investors in industries such as real estate, traditional financing for investment properties require a lot more information and proof of tenant payments' history in order to obtain a loan.
This is probably one of the most common reasons that people would need a bridge loan. When small businesses don’t meet the requirements, bridge loans provide the capital needed in order to handle short-term liquidity needs. They are designed with the intention of quick financing to businesses that don’t qualify for traditional financing.
There are plenty of industries that go through shifts that require major change and a bridge loan can help make those transitions financially doable. If your business is in need of immediate financing, Cathedral Finance has the answers you need!
Additional Cathedral Finance Resources
In addition to capital, a major benefit our clients receive from their affiliation with Cathedral Finance is access to our business advisory and consulting services offered via Cathedral Consulting. Different companies call for different situations, and our team of experienced and proven consultants is prepared to guide you through any situation that comes your way.
Long-term customer relationships are one of our top priorities. Our strategic guidance could be exactly what your business needs in order to thrive through change. With Cathedral Finance, you'll also have access to several advisory services including:
Buy or Sell a Business
Monthly Board Services
Strategic Sales Program
A Bridge Loan May Be Your Best Move
When your business is in a vulnerable position financially, a bridge loan could mean all the difference in sustaining during the transitional period of finding a more conventional source of financing.
We want to work with you to ensure that your business does not come to a financial standstill.
To get started, please fill out the form for a no cost, no obligation consultation with one of our finance experts.
"The team at Cathedral Finance delivered when others could only promise. I was more than just another client to them – it was a true investment into a relationship with every reward. They went above and beyond to add value to my business, much more than the actual financing. They have a deep understanding of business reality and base their approach on professional knowledge and integrity. I highly recommend them!”
~ Ivan Pavlov | President of Radiation Oncology Care at Meridian Park
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