A term loan is a loan that is repaid in regular payments (usually weekly or monthly) over a set period of time. Primary Funding generally provides term loans that are repaid anywhere from 6 to 18 months but may be longer in some cases. Term loans are a great way to provide an injection of working capital that gets paid back over a period of time allowing a company to take on new initiatives that will grow profits.
One thing to consider when getting a term loan is whether the interest rate is fixed or floating. A fixed interest rate means that the percentage of interest will never increase, regardless of the financial market. Low-interest periods are usually an excellent time to take out a fixed rate loan. Floating interest rates will fluctuate with the market, which can be good or bad for you depending on what happens with the global and national economy.
A “bridge loan” is basically a short-term loan used by a company to “bridge” a temporary cash gap. These loans are also known as a swing loan, gap financing, or interim financing. A bridge loan is typically repaid in 3 to 6 months but can extend longer. These loans will always have a well-defined and reliable repayment source. A bridge loan essentially “bridges the gap” between the time funds are needed, and generally when funds are expected that will pay off the obligation in full.
Everyone’s business needs are unique. Give us a call to discuss your business situation. We are happy to be a resource for you and discuss your needs and options and see how we may be able to help.