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KBLX Weekend Tip! Bridge Loan Funding continued...

KBLX Weekend Tip! Bridge Loan Funding continued...

Bridge Loan Funding

Emergency Gap funding, Bridge Loans are available for nonprofits in need of short term lending. Bridge Loans are made on a short-term basis in anticipation of guaranteed permanent or long-term funding. They are usually loans made against contract receivables or capital campaign pledges, and they are expected to be repaid as the receivables or pledges are collected. Nonprofit bridge loans usually have low interest.

Line of Credit

It is very important while you are in good standing with your finances with your bank that you implement a Line of Credit.  Establish the Line of Credit in healthy financial times and you will be able to weather the bad times with access to the Line of Credit which acts as Bridge Loan funds.  Be sure to pay down the line of credit with unrestricted funds (see my Blog on the definition of Unrestricted funds). Renew your Line of Credit annually. Try to establish the largest amount available for the Line of Credit to allow for a good business credit rating.  CAUTION - Remember a Line of Credit is not to be used routinely. The purpose is for a “Rainy Day” but as soon as the rain stops and the sun shines, the Line of Credit needs to be restored/repaid. The Line of Credit does 2 things:  1) Creates a strong financial portfolio if used correctly and 2) Gives the nonprofit access to emergency gap funding

6 Comments to KBLX Weekend Tip! Bridge Loan Funding continued...:

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Tuheen on Monday, October 01, 2012 5:14 AM
That's very informative article!! Credit card is now a day most important way of financial transaction. But it is also important to have good knowledge on it. Thanks for given information.
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Steve on Wednesday, October 03, 2012 2:37 AM
Excellent content. I think credit card is really important in our daily life but we should have proper knowledge about use credit card. Thanks.
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Albert Carlos on Tuesday, October 09, 2012 9:42 PM
What an exclusive post it is! I confidently say that credit card is a very useful tool for me because I always avoid cash transaction. However, I think everybody should to follow proper guide of a Credit card. Congrats for nice building and keep it up...
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taking advantage of low interest credit cards on Thursday, October 18, 2012 12:11 AM
Haha, very nice KBLX nonprofit weekend tips as always!! I like this review for being so fantastic nonprofit emergency funding. Thanks!
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Rachel Cook on Monday, November 12, 2012 10:26 PM
Thought of 'Bridge Loans' is very supportive plan for rebuild the zone of any business so I hope the new loan scheme will be welcomed by the entrepreneurs highly. Thanks for the detail of it.
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Credit for small business on Tuesday, February 05, 2013 5:37 AM
Outstanding post.You have provided the exceptional information.I was pointed such type of topic since long but at last nowadays my search is over and special thanks to you. Your blog is not only instructive but wonderful too.
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