A bridge loan: what does the file need to show?
A bridge file covers the gap until a known payment arrives, when that payment is documented. Such a file can be presented; the lender decides whether to make an offer.
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- What is a bridge loan?
- Financing that covers the gap until a known payment arrives: a signed sale, a dated receivable, a grant letter. It is repaid when that payment comes in.
- What does a lender need to see?
- A documented exit: a written, dated amount owed to the business, from a party the lender can identify. Without that document, the file is presented as a working-capital need instead.
- Does a signed contract count as an exit?
- A contract shows future work; a lender wants a payment already owed, with a date. Each lender draws that line in its own way.
- Can a bridge be presented if the exit is uncertain?
- It can be presented, with the file saying so. The lender decides, and may propose another product or decline.
What the lender looks at
- Actual deposits, month by month
- The deposits show what the business carries while it waits for the payment.
- Trend over the period
- The lender checks that the wait is a gap, not a slide.
- Payments to other lenders
- A payment already pledged to another lender is not an exit.
- NSF cheques
- A returned cheque while waiting for a payment is read closely.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
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