Pros and Cons of Bridge Loans

spacious modern business office, pros and cons of bridge loans

Estimated reading time: 3 minutes

You may need to start spending more money on your business to make money in your business. However, acquiring capital such as a bridge loan for your growth plans can be difficult. With daily operating costs and other expenses, you need to find a new source of income or financing.

Borrowing money is nothing new in the world of business. Many do this to start an entrepreneurial career, while others do so to fund their expansion. No matter why you take out a loan, you must choose it carefully.

Bridging the gap between financing and business growth.

Many financing solutions have recently become available to business owners. One of them is the bridge loan. But what is a bridge loan? It is a short-term loan that provides quick funding while you look for a more permanent solution.

Business owners use it to handle an existing obligation and reduce their obstacles in the long run. It’s becoming common among small businesses, but before you take out a loan, studying its benefits and terms is essential.

Here are the pros and cons of bridge loans.

Bridge Loans are a fast way to get funding for your immediate needs. The process—application, approval, and funding—is faster than most other types of loans because our bridge loans have fewer requirements. This gives you the capital to purchase new or additional equipment, pay for inventory, or meet your payroll needs without affecting your bottom line.

They give you complete control over your business

For most loans, you have to sign over a portion of your business as collateral. But a bridge loan from Probably Funding may only last a year, meaning you can quickly pay it back without relinquishing control over your business.

They give you a safety net for other expenses

As a small business, you are often at risk of running out of cash. Our bridge loans give you access to money that can be used to cover pertinent expenses. It’s a practical and valuable solution for businesses that have long payment cycles.

Potential cons

It might have larger payments

Since a bridge loan runs for a shorter period, you might be charged more during monthly repayments if you don’t choose a good company to work with and understand their terms. Late payments will be met with penalties and higher interest rates as well. Ensure you work with someone trusted and transparent, like Probably Funding, to get the best deal!

It could be risky for your short-term bottom line

Business owners who take out a bridge loan while waiting on an extended payment cycle risk failing to see that long-term money at the end. And when payments fall through, you will have to make your loan payments out of pocket. This is the risk with any loan, but is still worth mentioning. As always, only borrow what you expect to be able to pay back.

Look to Probably Funding for a bridge loan!

We’re dedicated to helping small business owners transform their start-ups into strong and sustainable organizations. Our bridge loans are customized to each client, giving them what they need without causing disruptions in their operations and cash flow.


This Probably Funding blog post is purely educational and features general information and opinions. Nothing contained herein is intended to constitute advice or recommendations and should not be treated as such.