When you are looking into hotel acquisition, it’s important to make the right choices for your financing. There are many options available, each with benefits and drawbacks for your business. One option that can be highly beneficial in hotel acquisition is a bridge loan. Knowing what a bridge loan is can help you determine if it’s a good choice for your business’s financing.

What Is a Bridge Loan?

A bridge loan is a short-term financing option that allows you to take advantage of a particular opportunity when you do not have the immediate capital to pay for it. Bridge loans are typically used for real estate to bridge the gap between purchasing a property and selling a property. With the bridge loan, your organization has the financing needed to purchase the property before the sale of another property goes through. This is especially beneficial with short-notice or time-limited investment opportunities that would benefit your organization’s long-term operations. Bridge loan terms range from as short as three weeks to as long as three years, depending on the organization and application process.

How Can It Help?

Though a bridge loan is not the only financing option for hotel acquisitions, it can be helpful for your business. Since it is short-term, it has a lower overall impact on your business and operations. Once the loan is repaid, your organization has the benefit of the new acquisition without the burden of the loan repayments. That means your organization can focus on the benefits of the acquisition instead of the drawbacks of the loan.

You don’t have to spend the next thirty years paying for your hotel acquisition. With a bridge loan, you can have the capital you need for your investment without the long-term burden of a loan repayment plan. That way, you can acquire your new property and take the next step in achieving your business goals and objectives.