By Brad MacLiver
Authorship and profile at Google
With the changes in the NJ pharmacy industry independent drug store owners, small and regional pharmacy chains, and pharmacy equity investment groups are acquiringNew Jersey
Bridge Loans are a short-term financing option and are used while waiting for permanent financing, or the next stage of financing to be obtained. Bridge loans provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. The bridge loan is generally "taken out," or paid back, with traditional financing.
One characteristic that a bridge loan has is that they can close quickly, which in turn allows a company to capitalize on a timely acquisition or another business opportunity. This sort of quick access to cash alsos businesses the chance to avoid temporoary problems like penalties or bankruptcy. If there are longer term issues that need to be dealt with, this form of “transitional financing” can provide the company with time until longer term financing can be secured.
Another characteristic that bridge loans have is that the process will usually require less documentation than conventional financing. Bridge loan lenders typically don't have the same government regulations to follow, so they tend to have more flexibility with their lending criteria and documentation they require. However, less documentation doesn't mean they will fail to perform due diligence to have a comfort level with the transaction before they fund.
Examples of using Bridge Loans in NJ Pharmacy Transactions:
1. An independentNew Jersey
2. In order to expand their business, a small pharmacy chain needs $1 million. They have 3 new equity investors who will be investing in the firm over the next 6 months, but at different intervals. However, the business has opportunities which require action sooner than 6 months. The quick closing bridge loan allows the pharmacy chain inNew Jersey
3. ANew Jersey
4. A pharmacy group developing new NJ pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy inNew Jersey
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit the pharmacy owner to quickly respond to the opportunity.
When there are business opportunities, buying NJ pharmacies, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regarding pharmacy bridge loans inNew Jersey
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
Understand the types of deals that require a bridge loan may be considered speculative in nature, or have higher risk factors. Due to this many banks do not offer bridge loans. Banks must meet government regulations and need to justify their lending practices. Riskier bridge loans do not usually fall within the lending parameters of many banks. Therefore a majority of the bridge loans will come from private investment firms. It is best to consult a company that has access to a number of funding sources who provide bridge loans.
************************
Authorship and profile at Google
With the changes in the NJ pharmacy industry independent drug store owners, small and regional pharmacy chains, and pharmacy equity investment groups are acquiring
Bridge Loans are a short-term financing option and are used while waiting for permanent financing, or the next stage of financing to be obtained. Bridge loans provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. The bridge loan is generally "taken out," or paid back, with traditional financing.
One characteristic that a bridge loan has is that they can close quickly, which in turn allows a company to capitalize on a timely acquisition or another business opportunity. This sort of quick access to cash alsos businesses the chance to avoid temporoary problems like penalties or bankruptcy. If there are longer term issues that need to be dealt with, this form of “transitional financing” can provide the company with time until longer term financing can be secured.
Another characteristic that bridge loans have is that the process will usually require less documentation than conventional financing. Bridge loan lenders typically don't have the same government regulations to follow, so they tend to have more flexibility with their lending criteria and documentation they require. However, less documentation doesn't mean they will fail to perform due diligence to have a comfort level with the transaction before they fund.
Examples of using Bridge Loans in NJ Pharmacy Transactions:
1. An independent
2. In order to expand their business, a small pharmacy chain needs $1 million. They have 3 new equity investors who will be investing in the firm over the next 6 months, but at different intervals. However, the business has opportunities which require action sooner than 6 months. The quick closing bridge loan allows the pharmacy chain in
3. A
4. A pharmacy group developing new NJ pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy in
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit the pharmacy owner to quickly respond to the opportunity.
When there are business opportunities, buying NJ pharmacies, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regarding pharmacy bridge loans in
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
Understand the types of deals that require a bridge loan may be considered speculative in nature, or have higher risk factors. Due to this many banks do not offer bridge loans. Banks must meet government regulations and need to justify their lending practices. Riskier bridge loans do not usually fall within the lending parameters of many banks. Therefore a majority of the bridge loans will come from private investment firms. It is best to consult a company that has access to a number of funding sources who provide bridge loans.
************************
