By Brad MacLiver
Authorship and profile at Google
With the changes in the OK pharmacy industry independent drug store owners, small and regional pharmacy chains inOklahoma
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. Permanent financing is generally used to "take out," or pay back, the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another characteristic of bridge loans is that the process usually requires less documentation than conventional financing. It is often the case that bridge loan lenders don’t have the same government regulations to adhere to. This means they can have more flexibility in their lending criteria and the documentation they require, but less documentation does not mean they won’t perform due diligence to have a level of comfort with the transaction before they fund.
Scenarios of using Bridge Loans in Oklahoma Pharmacy Transactions:
1. An independent OK pharmacy owner learns of health issues and decides to quickly sell the family owned pharmacy to an employee or local competitor. A more traditional method of financing for theOklahoma
2. A small pharmacy chain inOklahoma Oklahoma
3. A pharmacy owner in a leased location has the opportunity to acquire a commercial property quickly. It would be a greatOklahoma
4. An OK pharmacy group developing new 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 enables the project to move into the construction phase, then qualify for other forms of financing.
5. When a pharmacy is owned by at least two partners and one of the partners is ready to exit the business, a bridge loan helps to ensure both cash flow and uninterrupted operation of the business during the partner buyout.
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 ownerOklahoma
When there are business opportunities, buying pharmacies, selling Oklahoma 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 regardingOklahoma
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.
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Authorship and profile at Google
With the changes in the OK pharmacy industry independent drug store owners, small and regional pharmacy chains in
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. Permanent financing is generally used to "take out," or pay back, the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another characteristic of bridge loans is that the process usually requires less documentation than conventional financing. It is often the case that bridge loan lenders don’t have the same government regulations to adhere to. This means they can have more flexibility in their lending criteria and the documentation they require, but less documentation does not mean they won’t perform due diligence to have a level of comfort with the transaction before they fund.
Scenarios of using Bridge Loans in Oklahoma Pharmacy Transactions:
1. An independent OK pharmacy owner learns of health issues and decides to quickly sell the family owned pharmacy to an employee or local competitor. A more traditional method of financing for the
2. A small pharmacy chain in
3. A pharmacy owner in a leased location has the opportunity to acquire a commercial property quickly. It would be a great
4. An OK pharmacy group developing new 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 enables the project to move into the construction phase, then qualify for other forms of financing.
5. When a pharmacy is owned by at least two partners and one of the partners is ready to exit the business, a bridge loan helps to ensure both cash flow and uninterrupted operation of the business during the partner buyout.
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
When there are business opportunities, buying pharmacies, selling Oklahoma 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
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.
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