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What Are Small Business Bridge Loans?
A bridge loan is short-term financing that helps your business cover expenses during a transitional period. Whether you are waiting on a large invoice payment, seasonal revenue to pick up, or longer-term financing to be approved, a bridge loan keeps your operations running without interruption.
Bridge financing is not a long-term solution. It is designed to "bridge" a specific gap, typically lasting 3 to 18 months, with the expectation that another funding source or revenue event will cover the repayment.
Common Uses for Bridge Loans
- Waiting on receivables: Cover payroll and expenses while large invoices are still outstanding
- Seasonal gaps: Maintain operations during slow months when revenue dips temporarily
- Between financing: Bridge the time between applying for a bank loan and receiving funds
- Business acquisition: Secure a deal while longer-term financing is being arranged
- Construction or renovation: Fund improvements while waiting for project completion and payment
- Inventory purchases: Stock up for a busy season when current cash reserves are low
Bridge Loan Options
| Product | Best For | Term | Repayment |
|---|
| Working Capital Advance | General cash flow gaps | 3-12 months | Daily or weekly ACH |
| Revenue Based Financing | Businesses with steady revenue | 6-18 months | Fixed daily/weekly ACH |
| Invoice Factoring | Businesses with outstanding invoices | Per invoice | When client pays |
| Business Line of Credit | Recurring or unpredictable needs | Revolving | Monthly on drawn amount |
Qualification Requirements
- At least 3 months in business
- Minimum $10,000 monthly revenue
- Active business bank account
- No collateral required for most options
- All credit profiles considered
Bridge Loan vs. Traditional Business Loan
Traditional business loans from banks typically require extensive documentation, strong credit, and weeks of underwriting. Bridge loans prioritize speed and flexibility. You trade a lower interest rate for fast access to capital when you need it most.
The key is to use bridge financing strategically: know your repayment source before you borrow, and keep the term as short as possible to minimize costs.
Strategy tip: Use bridge financing when you have a clear repayment event coming (a large contract payment, seasonal revenue surge, or approved long-term loan). This keeps costs predictable and manageable.
Frequently Asked Questions
A bridge loan is short-term financing designed to cover expenses during a transitional period. It bridges the gap between an immediate need for capital and a future funding event such as a loan closing, invoice payment, or seasonal revenue increase.
Most bridge loan applications are reviewed within hours, and funding can happen in 24-48 hours. The speed depends on the product type and completeness of your documentation.
Most of our bridge financing options do not require physical collateral. Approval is based primarily on your business revenue and bank account activity.
We work with all credit profiles. While credit is a factor in determining terms, we focus primarily on your business revenue and ability to repay. Many clients with scores below 600 are approved.
Bridge financing amounts range from $5,000 to $500,000 depending on your business revenue, time in business, and the specific product. Most businesses qualify for 1-2x their monthly revenue.
A bridge loan is a one-time lump sum designed for a specific purpose with a fixed repayment schedule. A line of credit provides ongoing access to funds that you can draw from as needed and repay, then draw again.