By Brad MacLiver
Authorship and profile at Google
With the changes in the NH pharmacy industry independent drug store owners, small and regional pharmacy chains, and pharmacy equity investment groups are acquiring pharmacies inNew Hampshire
Bridge Loans are a tool for short-term financing that are used while waiting for permanent financing or the next stage of financing to be obtained. These loans provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. Permanent financing is generally used to "take out," or pay back, the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another quality of bridge loans is that the process usually necessitates less documentation than conventional financing. Bridge loan lenders usually don't have the same sort of government regulations to adhere to, which allows them to have more flexibility in their lending criteria and the documentation they require. However, less documentation does not necessarily mean they will not perform due diligence to have a level of comfort with the transaction before they fund.
Examples of using Bridge Loans in NH Pharmacy Transactions:
1. An independent pharmacy owner inNew Hampshire
2. A small pharmacy chain requires $1 million in order to expand their business. This chain has 3 new equity investors who will be investing in the firm over the next 6 months but investing at different intervals. However, the business has opportunities which require action before 6 months. The quick closing bridge loan will help provice the needed funds to theNew Hampshire
3. A pharmacy owner in a leased location has an opportunity to quickly acquire a commercial property that would be a great pharmacy location inNew Hampshire
4. A pharmacy group developing new NH pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy inNew Hampshire
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit the NH pharmacy owner to quickly respond to the opportunity.
When there are business opportunities, buying pharmacies in New Hampshire, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regarding NH pharmacy bridge loans:
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
Understand the types of deals that require a bridge loan may be considered speculative in nature, or have higher risk factors. Due to this many banks do not offer bridge loans. Banks must meet government regulations and need to justify their lending practices. Riskier bridge loans do not usually fall within the lending parameters of many banks. Therefore a majority of the bridge loans will come from private investment firms. It is best to consult a company that has access to a number of funding sources who provide bridge loans.
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Authorship and profile at Google
With the changes in the NH pharmacy industry independent drug store owners, small and regional pharmacy chains, and pharmacy equity investment groups are acquiring pharmacies in
Bridge Loans are a tool for short-term financing that are used while waiting for permanent financing or the next stage of financing to be obtained. These loans provide funding to "bridge" the gap between a company’s current needs and their long term financing requirements. Permanent financing is generally used to "take out," or pay back, the bridge loan.
One of the characteristics of a bridge loan is that they can close quickly, which in turn allows a company to capitalize on a timely business opportunity, or acquisition. The quick access to money can also allow a business the chance to avoid penalties, bankruptcy, or other temporary problems. If longer term issues need to be dealt with, this “transitional financing” provides the company time until longer term financing can be secured.
Another quality of bridge loans is that the process usually necessitates less documentation than conventional financing. Bridge loan lenders usually don't have the same sort of government regulations to adhere to, which allows them to have more flexibility in their lending criteria and the documentation they require. However, less documentation does not necessarily mean they will not perform due diligence to have a level of comfort with the transaction before they fund.
Examples of using Bridge Loans in NH Pharmacy Transactions:
1. An independent pharmacy owner in
2. A small pharmacy chain requires $1 million in order to expand their business. This chain has 3 new equity investors who will be investing in the firm over the next 6 months but investing at different intervals. However, the business has opportunities which require action before 6 months. The quick closing bridge loan will help provice the needed funds to the
3. A pharmacy owner in a leased location has an opportunity to quickly acquire a commercial property that would be a great pharmacy location in
4. A pharmacy group developing new NH pharmacy locations can receive bridge loan funding to get through the permitting process of a project when conventional financing isn’t available at this early stage due to there is still too much risk. A bridge loan allows the project to move into the construction phase and then qualify for other forms of financing.
5. When a pharmacy in
6. Real estate, or equipment bought at auction may have a narrow window for closing the deal and timing of traditional financing would keep the buyer from proceeding with the opportunity. Benefits of a bridge loan will permit the NH pharmacy owner to quickly respond to the opportunity.
When there are business opportunities, buying pharmacies in New Hampshire, selling pharmacies, quick deadlines, an old loan maturing before a new loan can be put in place, funding needs during the permit, planning, or evaluating stages, etc., bridge loans can be an essential financial tool.
Tips regarding NH pharmacy bridge loans:
1. Bridge loans are quick to obtain, but quick to expire.
2. A bridge loan is similar to a hard money loan and the terms are often used interchangeably in conversations. Both are short-term, higher interest rate, non-standard loans, but in some circles hard money refers to the lending source and a bridge loan refers to the duration of the loan.
3. Because bridge loans usually come with higher interest rates than traditional financing a larger down payment, meaning a lower Loan to Value (LTV) and a lower level of risk and provides an opportunity for lower interest rates.
4. With the shorter time period of bridge loans borrowers will need to be aware that fees for valuations, legal, dues diligence, etc., will be amortized over a shorter period than traditional financing transactions.
Understand the types of deals that require a bridge loan may be considered speculative in nature, or have higher risk factors. Due to this many banks do not offer bridge loans. Banks must meet government regulations and need to justify their lending practices. Riskier bridge loans do not usually fall within the lending parameters of many banks. Therefore a majority of the bridge loans will come from private investment firms. It is best to consult a company that has access to a number of funding sources who provide bridge loans.
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