Why use CSquared Capital for your Bridge Funding requirements?
- Many businesses require short term funding which is not available from traditional institutions. This is normally due to a timing or a security issue.
- Due to our size, we are able to vet and execute deals in a very short space of time which enables our clients to meet their obligations.
Most common reasons for requiring Bridge Funding
- Sudden increase in normal sales requiring a working capital top up – A business that has forecasted correctly and stocked accordingly suddenly gets an increased order that they cannot fund through normal working capital.
- Getting from current position to accessing senior debt – A property developer that can access senior finance once the project is at a certain stage. They would sometimes require a bridge to get to the agreed stage.
- Granting of a tender or unusually large order that needs to be fulfilled – This normally pertains to a once off lend in order for the borrower to acquire the materials to meet the tender requirements. Once it has been fulfilled there is no need for ongoing funding.
- Seasonal products where a bridge may be needed to get to the next sales cycle. (Agriculture) – In some industries, for example agriculture, there is a seasonal lag between capital outflow and the realization of profit. This lag sometimes needs to be catered for using a bridge loan.
Deal Process – We can turn around in 7 days depending on security
- Term Sheet – Once the high level details have been discussed and agreed they are formalized on a deal term sheet.
- Legals – Once the Term sheet is accepted this is converted to a legal agreement.
- Pay Away – Pay Away happens at the time that the legals are signed.
Loan Fundamentals
- Our average deal duration is between 4 and 6 months.
- Our normal lend quantum is between R2.5m and R6m.