Obstacle 04 · Temporary cash flow
Could temporary financing change the cash flow?
Some bridge or cross-collateral structures may change the monthly amount you must pay during the transition. The specific financing terms determine whether that helps your situation.
Less cash due now does not mean less total cost.
Some structures allow interest to accrue rather than requiring monthly interest payments for a period. That interest remains a cost and must be addressed in the payoff and exit plan.
A few things matter.
- Confirm which existing payments remain and which obligations are replaced.
- Compare fees, interest, maturity and repayment—not only the monthly amount due.
- Plan for a delayed sale, lower proceeds and the financing you want after selling.