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Understanding An Atlanta Commercial Bridge Loan

By Tom G. Honeycutt


Securing property for a business can be one of the most valuable investment measures provided that it is based on research. An Atlanta commercial bridge loan is a financing alternative for companies interested in estate investments and professional development. When seeking funds, there are a number of factors that businesses must remain aware of.

The bridge loan serves as a temporary option for companies that are interested in purchasing property fast that may be related to a foreclosure or bankruptcy. A firm will be provided the necessary funds and must bridge the time period within which a deal can be made and repaid. The financing can offer numerous advantages for the settlement of a loan that may require a major deposit without immediate access to the required finances.

Bridge financing is most commonly sought where a piece of a commercial property will only be made available for a specific period of time. It is a temporary form of financing that can be accessed for properties or large loan repayments until more permanent funds are sought and secured. Long term funds include refinancing, the sale of a property, and more extensive loans.

Before considering such loans, it is important to assess the risk associated with large financial sums with short term features. The funding alternatives will be subject to higher interest rates in comparison to regular loans and must be determined before an investment decision is made. These sums must be repaid within 6 months to a year requiring access to cash after that period to settle debts without incurring penalties.

These short term loans are often settled as soon as a borrower has secured more permanent financing. While such financial alternatives can prove most beneficial when fast access to money is needed to secure a property deal, it must be based on sufficient research to prevent poor results. This includes seeking finances from a reputable lender to advise on affordable repayments and flexible terms.

Implementing the appropriate planning and similar measures will aid in making timely repayments. Organizations can suffer from severe penalties where there is a lack of funding to settle the outstanding debts. Implementing the correct financial management tools will aid in delivering the greatest possible value for business.

Commercial bridge loans can offer a number of financial benefits when looking for value and best possible deals. The sum must be fully paid when more permanent financial solutions are sought. Consultation with a reputable lender will provide the most favorable credit solutions.




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