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Bridge Financing Explained Pros and Cons for Growth-Stage Companies - Icon

Bridge Financing Explained

Pros and Cons for Growth-Stage Companies

What's Inside?

As growth-stage companies go through rounds of raising capital and scaling the business, it can become challenging in the interim periods to address immediate cash flow needs. To get through those uncertain times, many turn to bridge financing.

Bridge financing can be a highly effective solution. It allows regular operations to continue while you plan and prepare for growth. Using debt to address bridge financing needs offers the additional benefit of preserving equity while still infusing the company with capital for continued operations.

If your company is looking for additional capital between larger raises, it’s an option worth considering – and one that’s rapidly increasing in popularity. With extra flexibility, this form of financing, whether from investment or private credit, can help growth-stage companies maintain financial control while meeting urgent funding needs.

In this guide, we’ll cover what bridge financing is, some of its most common uses, and the benefits and potential challenges to consider when employing this financial strategy. Get your free copy today.

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Growth-Stage Finance

We specialize in guiding growth-stage companies through the intricate landscape of risk management, resource allocation, and financial target setting, leveraging our team's cumulative expertise of over 50 years across diverse sectors of technology and services.

Our team is comprised of seasoned operators in finance, ranging from startups to large enterprises.

We understand the challenges companies face at all levels and know how to develop scalable financial strategies.

Meet Some of Our Clients

With 34 industries & sectors served and over 250 transactions advised, 5th Line can help address the challenges your business is facing.

Lower.com (2)
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Areas of Expertise

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Growth Capital

Adding cash to the balance sheet to extend runway to break even or the next equity round, fuel sales, and grow overall business development.

  • Term Loans
  • Lines of Credit
  • Acquisition Financing
  • Refinancing

Working Capital

Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.

  • Revolving AR Lines of Credit
  • Inventory Lines of Credit
  • Purchase Order Financing
  • Project & Contract Financing
business documents on office table with smart phone and laptop computer and graph financial with social network diagram and three colleagues discussing data in the background
business documents on office table with smart phone and laptop computer and graph financial with social network diagram and three colleagues discussing data in the background

Working Capital

Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.

  • Revolving AR Lines of Credit
  • Inventory Lines of Credit
  • Purchase Order Financing
  • Project & Contract Financing
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CAPEX Financing

Financing for capital expenditures including machinery, FF&E, computer & other technology-related hardware, etc. for the purposes of funding company growth.

  • 100% Financed
  • Soft Costs Included
  • Non-Warrant
  • Equipment-Specific Lien

Testimonials

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Gautam Kumar
Lower.com

5th Line helped us identify lenders, get into the conversation, and complete a debt raise in a historically difficult market. The access to capital helps us play offense and continue to invest in growth while many competitors cannot. James was a pleasure to work with and provided great advice and counsel throughout the process.

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Patrick Brooker
BrightOrder

5th Line, under the leadership of James Turner, has developed an extensive portfolio of “Potential Investors “ to meet the needs of most borrowers. By having 5th Line prequalify investors, based on their intensive deep dive into our operations to ensure there was a strategic alignment between all parties, my job was significantly simplified allowing me to focus more on deal structure. Time is Money, my time was spent where I add the most value, and 5th Line made that happen!

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Rob Costanzo
Extole

We needed to refinance a term loan with a hefty bullet coming due on our balance sheet. With capital markets being more constricted, we engaged 5th Line to manage a process of reviewing with different lenders and structuring a debt refinancing solution, tailored to what we needed. The process was quick and efficient and now that it’s closed we can return to focusing on growing the business.

Ready to Get Started?

Download your free guide today!