When you can’t make ends meet, or your funds are suddenly coming up short, a bridge loan can make a major difference for your business. Bridge funding solutions are a quick fix that fills the gap for hundreds of South African small businesses.
Cape Town Capital is a Small Business Funder based in Maryland that connects small businesses with bridge funding options. Our bridge financing solutions help to eliminate cash shortfall by providing business with access to the funds they need to maintain smooth operations.
Our business funding options are specially designed to satisfy South African small businesses and their growing needs. From short term funding to long term financing, we offer various programs to suit the different stages a small business might experience.
We will work with you to identify the best financing option for your small business.
Cape Town Capital Guide to Bridge Financing
WHAT IS A BRIDGE LOAN?
A bridge loan, also known as a swing loan or gap financing, is a type of short term loan. It is typically used to bridge the costs that arise in a period between two loans. We are proud to be a bridge financing partner.
WHAT ARE BRIDGE LOANS USED FOR?
As mentioned, bridge loans are used for bridging the gap between two loans. It provides short term funding to cover various immediate costs.
Bridge financing solutions are often used to:
- Ease the pressure on your working capital
- Conduct emergency repairs of maintenance work
- Replace broken equipment
- Keep everything flowing smoothly by honouring payments to partners and anyone else you owe money to
- Improve everyday cash flow
- Cover financial shortfalls
- Maintain daily operations
- Buy discounted materials and inventory
WHO USES BRIDGE FUNDING SOLUTIONS?
Companies commonly take out bridge funds when they need fast access to working capital or need to make ends meet in between rounds of funding.
Remember that bridge funding is relatively low level compared to other funding programs and is therefore not suitable for high-value expenses such as hiring new staff or developing new infrastructure.
If you want to pursue these options, consider if another business funding program like an expansion loan might be better suited to your business.
THE BENEFITS OF BRIDGE FUNDING
Access to an infusion of working capital— or lack thereof — can make or break a small business. Consider the many ways that bridge financing can benefit your small business:
- It is a means to an end
- It is easier to get approved for
- It can be obtained quickly
- It prevents loss of funds during waiting periods
- It is a short term commitment
- It provides immediate working capital
- It is a small, low-risk loan
- It is obtained based on profit to be made in the near future
How to Get Bridge Funding with Bad Credit
There are countless reasons why a small business may have a poor credit score. funders and finance agencies all define bad credit in different ways, but a bad credit score is typically considered anywhere between 300 and 629.
That said, a less than stellar credit score shouldn’t make or break a small business’s ability to attain the funding they need to get back on track.
As an alternative Small Business Funder, Cape Town Capital makes small business funding options like bridge financing accessible to the small to medium-sized businesses who need them. We provide bad credit funding among other programs to help new South African companies attain the capital they need to maintain and grow operations.
Even with bad credit, you have access to small business funding opportunities at your fingertips. Consider the different ways you can attain financing with poor credit:
1: Leverage Collateral & Assets
Does your small business have bad credit but assets to leverage? Utilize unpaid customer invoices and future debit or credit card transaction to shift the focus to your revenue’s ability to cover a loan.
2: Pay a Cash Down Payment
If your company has a limited credit history but adequate cash flow, consider securing a business loan by covering a percentage of the loan in cash.
3: Apply for a Smaller Loan
Long term funding like expansion loans can be hard for small businesses with minimal credit history to qualify for. If your company is flexible in the amount it wants to secure, consider applying for a shorter-term loan — like a bridge loan!
4: Sign a Personal Guarantee
Is your personal credit better than your business’s credit? Sign a personal guarantee to focus more on your personal credit than business credit. This way, your application will be assessed based on your personal ability to pay back the loan.
Apply for Your Bridge Loan Today
Cape Town Capital may be based out of Cape Town, but our small business funding options are accessible across South Africa— because our process is exclusively online!
Our process makes it possible to apply online for a bridge funding loan, or any of our business financing solutions for that matter, from anywhere at any time. All you need is internet access, and access to your business’s information — most of which you likely know already as a diligent small business owner.
You can obtain a bridge loan from Cape Town Capital in 4 easy steps:
Submit your Application
Apply online for your bridge loan or business financing solution from Cape Town Capital by filling out our application. The form requires some essential information about your small business and should only take a couple of minutes to fill out.
Await Your Approval
After you submit your application, it gets assessed by one of our credit specialists. Because we base qualifications on general business history, we are able to approve far more applications than a traditional institution does. We commonly will provide approval within the same day we assess an application.
Get Your Funds
We understand that small businesses don’t necessarily have the luxury of time. After all, not having access to the right funds at the right time can mean losing out on a key opportunity. This is why we deposit your funds into your account within 24 – 72 hours of approving your application.
Work with Us
There is no one-size-fits-all solution to small business funding, which is why we approach business funding with a personalized approach. We work closely with you to identify the right funding program for your business and to outline a feasible repayment schedule.
Alternative Small Business Funding VS. Big Banks
Small businesses constantly struggle to acquire the funding they need for success and growth. With traditional institutions like big banks unlikely to lend funds to new companies, these businesses are left looking for alternative resources for financing.
As an alternative bridge financing partner in Cape Town, Cape Town Capital provides small businesses with access to effective, efficient funding solutions to help get them on the right track.
Consider how Cape Town Capital provides financing in comparison to traditional institution’s:
- Requirements: Traditional institutions require unrealistic credit scores and impractical amounts of documentation to approve a business for funding. At Cape Town Capital, however, we base a business’s qualifications for funds on their general business health.
- Approval time: Our streamlined process allows us to approve more businesses for funding, and provide these approvals within a day of assessing a business’s application.
- Quick Funds: Our streamlined process also involves quick access to funds. We deposit funds into a business owner’s account within 24-72 hours after their application is approved. It’s important to us that small businesses get the financing they need when they need it.
- Flexibility: Bank loans commonly have stringent rules in place that dictate how a business can use loaned funds. At Cape Town Capital, we understand that small businesses know their business best. We believe small businesses should have the power to judge where their funds should be allocated to maintain their business and achieve growth.
- Personalized Service: Unlike big banks, we work individually with small business owners to ensure they find the right funding program to suit their needs. We base repayment schedules on a business’s projected revenue so that they are that are feasible and realistic.
About Cape Town Capital: Financial Solutions You Can Count On
Cape Town Capital is a business funding company based out of Cape Town that believes that small businesses are the backbone of South Africa’s economy. We are committed to supporting these businesses by making adequate financing accessible to the South Africans who own them.
By leveraging strategic partnerships, data science, consultations, and cutting edge technology, we are able to provide an innovative approach to business funding. Our business funding solutions are personalized, transparent, and effective.
We work closely with small businesses to ensure that they are supported every step of the way, and that they get the funding they need to succeed. Every small business is unique, which is why we offer various programs to suit businesses at different phases of growth.
Learn more about our small business funding options today! Choose us as your bridge financing partner.