In the times of Covid-19, many businesses have found themselves strapped for cash to meet their bills. This is why bridging finance is a great option for small to medium-sized businesses looking to secure funds fast and get back to work.
Bridging finance, or a bridge loan, is a short-term loan that is typically taken out for a period of 2 weeks up to 12 months. This type of funding allows businesses more flexibility to take advantage of new opportunities when business is slow.
This is ideal when operational costs such as salaries, running costs, and other organisational costs need to be met to produce a product or a service.
The Benefits of Bridging Finance
For many businesses, customers failing to pay on time are a common problem. This puts a business under severe financial strain and affects the ability to buy new inventory or pay employees’ salaries, amongst a number of other things. This funding allows your business to grow effectively without worrying about delayed cash inflows.
Here are some practical benefits of bridging finance:
- Funds are made available to you much faster than traditional lenders such as banks
- Flexible payment options
- Allows your business to make a profit through sales and services
- Aids business growth without having to put expansion plans that require significant investment on hold
Lula and Bridging Finance
We understand that different businesses have different needs, which means their financing requirements will differ too.
Our bridging finance offer is unsecured (no collateral required), more affordable, and easily accessible. We also allow you to settle early without having to worry about penalty fees. With Lulalend’s quick and easy online application, you can access business funding of up to R2 million within 24 hours. Our application is completely paperless, requires no collateral, and you’ll have an answer in hours.
Other financial organisations may offer alternative forms of funding such as; cash advances, working capital, and more. It is important to choose the right option for your particular business needs. Speaking to a Funding Specialist is the best way to have all your questions and concerns answered before you take out a loan.
Business funding for specific industries is becoming increasingly popular. For example, equipment funding for manufacturing and construction businesses exists across a number of banks, alternative lenders, and other funders. An industry-specific loan means the agreement terms are tailored specifically to your business operations and make the process more seamless.
If you’re looking for funding for your business, read more about Lulalend’s business funding options here.
