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Bridge loans can solve short-term cash needs for business. We believe that bridge lending provides an attractive financing vehicle to meet short-term working capital needs of growth companies. Frequently, growth companies have short-term periods during which they cannot gain access to traditional debt sources due to a lack of cash flow or underlying accounts receivable required to obtain such loans. In many cases, CrossHill can solve these short-term cash needs by providing bridge loans. The value proposition for borrowers is simple: If a growth company can reach its short-term objectives by being provided cash from a bridge loan, this debt capital is generally less dilutive than equity capital. Depending on the specific objectives, the benefits to the borrower may vary. If a company is bridging to an equity financing round, sale or merger, CrossHill financing allows the company to continue its normal business operations while more effectively negotiating the terms and conditions of its closing. If a company is bridging to a milestone event, our bridge loan allows the company to continue its normal business operations while improving its valuation and accessing additional equity sources. It has been our experience that more seasoned management teams, confident in their ability to execute, prefer the less dilutive bridge financing than the more dilutive equity financing as a means of providing short-term working capital.
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