Bridge Loan
Securing a bridge loan, with the help of the qualified and comprehensive team at George Smith Partners, is precisely what you need to help you expand your business or purchase a new home.

A bridge loan, also known as a caveat or swing loan, is a short-term loan to people who need access to large sum of money in and for a very short period of time. As the term implies, a bridge loan is meant to "bridge” the financial gap between short periods of time when money is needed. A bridge loan can be used by both individual people as well as corporations and can be modified for many varying circumstances. For example, if a project manager's team is between stages of an important project, and needs to pay construction workers right away, he should consider taking out a bridge loan enabling him to pay them during a short period of time when they don't have financing, and then repay the loaning institution once the next stage begins.

In the case of an individual, bridge loans are most frequently used in the real estate market. The reason for this is due to the fact that often times there can be a lag between the sale of one property and the purchase of another. By using a bridge loan a homeowner is allowed more flexibility. Additionally, a bridge loan are can be used by individuals to prevent a loan from defaulting or to partake in a spur-of-the-moment investment opportunity.

A common misconception among many people is that a bridge loan is extremely expensive. However, this is not entirely true. Especially when working with George Smith Partners. Since a bridge loan is supposed to be short-term (ranging between one and two months), the annual percentage rate of the loan can be deceiving due to the fact that a bridge loan is not meant to paid over a long period of time such as over the course of a full year.

Terms of a bridge loan can vary. Some are structured so that they completely pay off the old home's first mortgage, while others pile the new debt on top of the old.

Borrowers come to George Smith Partners to improve the terms of their existing relationships. Some come to us because they want to receive equity from friends and family for a bridge loan. Others are experienced businessmen and entrepreneurs who have recently gone out on their own and need a bridge loan to help jump start their business on the right foot. Regardless of the situation, George Smith Partners works with developers, large and small, to help them find and secure the right equity investors. We have the experience, expertise and relationships necessary to secure equity you.