Getting additional capital for your business takes time. In traditional banks, it would take 60-90 days to get a reply. We, at WeCompeteLenders, can get you funding much earlier in the form of term loans. This type of Loan has varying maturity periods. They can be used to finance the purchase of properties, equipment and supplies. They are also used for a variety of other business needs such as payroll and expansion. The main purpose of term loans is to cover shortages in the cash flow of a company.    What are term loans? Financing options have several differences, and they also have their advantages and disadvantages. Some of the distinguishing characteristics of term loans are: Fixed loan amount - Applying for a term loan means applying for a loan with a fixed amount. The loan amount affects the interest rate. Loans with large amounts receive low-interest rates compared to smaller loans. Fixed repayment schedule - The repayment schedule for term loans is decided by both lender and borrower before the approval of the loan. This can be a fixed date monthly, quarterly, semi-annually, and annually.  Fixed or floating interest rate  - Interest rate for term loans vary greatly. They can also be either fixed or floating. Floating interest rates move up or down depending on the market. It is sometimes referred to as variable interest rate.   There are several types of term loans. They are differentiated based on their maturity date.  Short-term loans - These term loans are obtained and used for a specific purpose.This is the typical type of loan which most business avail to cover cash shortages resulting from sudden expenses that caused cash flow problems. The maturity period for this loan is one year or less. Examples of these are bridge loans, payday loans and refund anticipation loans. Intermediate-term loans - Intermediate-term loans are usually obtained to purchase equipment or furniture. These loans usually last between 1 year to five years. Car loans and equipment financing fall under this category. Long-term loans - Long-term loans can last for up to 40 years. These are large loans usually availed for construction, remodeling or expansion. Long-term loans are always secured. Construction loans and mortgage loans are examples of long-term loans.   How Do Bridge Loans Work? Sometimes, term loans may take a while to process, and funding is  delayed. There is a financing option that bridges the gap between your current business needs and your next capital influx. This is in the form of bridge loans - a quick source of cash for immediate needs. How exactly do bridge loans work?  If you applied for a large business loan, but the cash won’t be available immediately, you can avail of a loan with a lower amount until you receive the funding for your original loan. Businesses especially need funding during interim periods when they are waiting for the capital influx from loans. Bridge loans ensure that the company does not run out of money until the funding comes in. A bridge loan is an example of a short-term loan. They are paid immediately after receiving the funds from the original loan.   Startups and small businesses often experience problems with cash flow. WeCompete Lenders provides businesses all over with temporary financing to address this problem. Bridge loans are high-risk loans. Thus they normally have high-interest rates compared to other short-term loans. At WeCompete Lenders, we offer bridge loans at reasonable rates until our clients receive permanent financing. Know more about bridge loans from our loan specialists at [email protected]. For faster response, you can call us at (844) 516-0633.