Equity Bridge Loan
Bridge loan is a short term loan or it can be said as an interim financing, as for an individual or business till permanent financing is obtained. It is recognized by many names in different countries like Equity Bridge Loan “swing loan”, “caveat loan”, “gap financing” etc. The Equity Bridge Loan is also known as “subscription line facilities” or “capital call facilities” provides great flexibility to fund management.
There are qualifying investors in Equity Bridge Loan including financial institutions etc. and the borrowing cost depends on the size of funds, risk of investors etc. The Equity Bridge Loan carries high risk and is difficult, there is high risk on small amount of reward and the worst part is that the banks cannot sell equity. It appeared in 1980 but at that time it was dormant and became popular; when equity firms started pursuing the larger companies on their own.
There are also significant risks involved in the financing of Equity Bridge Loan for the financing of private equity. The equity bridge facilities in Equity Bridge Loan are provided to private equity funds and now the large number of banks and financial institutions are providing these capital facilities and the form of documents required are also now standardized. It is very important to understand the fund structure. There are specific provisions for providing the equity bridge facilities. The equity bridge facility is a form of short term financing and it can be either revolving credit or term facility. The equity bridge facility or capital facility have now become very much popular and is now easy to take.
Select Commercial and Hard Money Lender and Broker for Purchase Loans, Commercial Mortgages, Rehab Loans, Home Improvement Loans, ARVs and Refinancing from following area in USA