Using Bridge & Hard Money Loans- Infographic Transcript By Kris Roglieri

Bridge Loans, also known as Hard Money Loans are short-term loans that are used to help a business through a financial gap until they secure longer term or permanent financing.

How Bridge & Hard Money Loans Work:

Step 1: Your business is in need of fast cash to prevent foreclosure on property, or is seeking help through a financial struggle because permanent financing is taking too long to obtain.

Step 2: Your business then applies for a Bridge Loan & Submits Collateral such as property or inventory to secure the loan with Prime Commercial Lending

Step 3: Prime Commercial Lending then provides your business with working capital in order to bridge your financial gap.

What You Need To Know About Bridge Loans & Hard Money Loans

The difference between a bridge loan and a hard money loan is that bridge loans are used to move a company forward and avoid delays, while hard money loans are used in cases of emergency in order to save a struggling business.

Advantages Of Bridge & Hard Money Loans:

-You can use existing equity as collateral to secure new property before selling your current property.

– There are no set qualifications, guidelines, or limits for a bridge loan.

– Bridge & Hard Money loans are fast

Disadvantages of Bridge & Hard Money Loans

– High interest rate

– There are excessive fees associated with bridge loans

– Bridge & Hard Money Loans only cover max. 80% of property market value.

Interest Rates With Bridge & Hard Money Loans, ranging from 9-14% depending on the collateral put down.

What Can Bridge & Hard Money Loans Be Used For?

Generally used in the real estate market to save property from foreclosure or to close on a property quickly. They can also be used as for an acquisition, short sales, or rehab financing.

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