Richard Butler Creagh On Bridging Finance
Welcome to the Richard Butler Creagh blog. Richard Butler Creagh is a financial consultant providing clients with specialized financial, property and investment guidance. In today’s blog, we’re talking about what bridging finance is. Read on to find out more.
Bridging financing is a great way to provide our company with financial liquidity at a difficult time between the start of an investment and the reimbursement of its costs or obtaining a payment The use of this form of assistance can significantly reduce the risk of company bankruptcy, which is why this form of support is very popular among entrepreneurs.
Bridging financing allows you to maintain financial liquidity in the period between covering the project implementation costs and their reimbursement, allows for patching the budget hole, ensures continuity of investment financing and funds for current expenses of the enterprise. By undertaking this type of commitment, we significantly reduce the risk of losing financial liquidity at the time of large expenditures on selected investments.
Investing in innovation and improving the company’s services is an indispensable task for every entrepreneur. It is in this way that he can provide his brand with a competitive advantage, strengthen its position on the market or gain the trust of customers. Unfortunately, investing almost always means considerable expenses that can undermine a delicate financial balance of the company – at that moment, bridging financing comes to our aid.
Bridging financing is a type of commitment that allows our company to obtain the funds necessary to maintain financial balance. We reach for such a solution especially when we undertake investments that require large financial outlays. Even if the invested funds are to be refunded to us, the process of receiving the necessary money may drag on and thus expose the company to financial difficulties. Bridging financing allows us to avoid this because it ensures financial stability even when large investment costs are incurred. In this way, we can devote additional cash, gained through bridging financing, to current expenses when we spend our own funds on a specific investment goal.
The market offers a wide variety of opportunities to take advantage of bridging support. Most often it takes the form of bridging loans, advances granted from the entity reimbursement of a given investment, bridging loans and loans granted by other entrepreneurs. Choosing the right commitment is a very important issue that can affect the fate of our company. When making decisions, one should take into account the credibility and reliability of the company in which we want to obtain financial support, and then compare its terms with the offers of other lenders. It is also worth considering a few different offers and choosing the one most suitable for the financial situation of our company. The obligation that will help us to keep our financial liquidity in the face of large investment expenditures can be obtained at a bank, in a large enterprise or in a non-bank institution.
Bridging financing and non-bank market. The non-banking sector more and more often sees its chance in offering not only financial obligations for individual clients but also loans adapted to the needs of entrepreneurs. For consumers, non-bank loans for companies are a great alternative to bank liabilities, mainly due to the limited amount of formalities and accelerated time to obtain access to cash, as well as a competitive price.
The number of non-bank offers is increasing all over the world, targeted at business owners who need financial support. The attitude of entrepreneurs to this type of solutions is also dynamically changing – initially, they approached them with reserve, but nowadays they are more willing to reach for this form of additional financing. Bridging loans are a great alternative for people who have been refused at the bank or lack of funds to complete their investments.
“We make sure our investors are protected so that no one project can affect another. The borrower gets protection on the basis that we don’t take anything on unless it has stood up to our due diligence process and is viable. We are rigorous but in the end everyone benefits. Our aim is to help all sides of the project thrive.” Richard Butler-Creagh, 2017
Richard Butler Creagh established Henley Finance in 2013, a short-term bridging finance company that specializes in loans. Read more about Richard Butler Creagh on his official website and learn more about Bridging and Commercial app here. Connect with Richard Butler Creagh Linkedin page here.
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