Bridge Loans
Bridge loans are short term loans that exist to assist companies in need of financing between two major events. Often, such events involve public offerings or private placement meant to “bridge” a company until the next round of financing can infuse it with cash. In other words, bridge loans are used by companies to solidify their footing while negotiating longer-term funding options.
IPO bridge financing is available to companies going public and covers the IPO cost, to be paid when the company goes public. Different bridge financing options work best for different circumstances.
Types of Bridge Financing
Debt Bridge Financing: Companies receive an immediate cash flow to free up financial obligations until additional funding comes through using a bridge loan. Although bridge loans are short-term and have a high interest rate, they provide borrowers with the flexibility to meet any of their immediate financial obligations.
IPO Bridge Financing: In investment banking, bridge financing is used by companies before an initial public offering, designed to cover expenses associated with the IPO and repaid once the IPO is complete. The investing entity often receives discounted shares of the company to help offset the loan costs.
Riverpoint Capital works with accountants, accountants, auto repairs and sales, aviation flight schools, doctors’ offices, cosmetic stores, and many more types of businesses to identify and fulfill their bridge loan needs.
Riverpoint Capital has offices based in New York, NY and Hollywood, Florida. To begin the process of securing your bridge loan, contact us today.