Bridge Financing
Bridge financing is a strategic initiative offered by Accelerate Prosperity to support COVID-19 and other uncontrollable events (flood, earthquake, or Macroeconomics crisis) which adversely impacted startups for its pipeline and portfolio in its geographies. It involves providing both technical expertise and financial assistance to bridge the gap between the current challenging circumstances and future stability. The businesses will be supported through financial and technical assistance to help them survive and sustain jobs during this period.
Financing Services
One of the major challenges startups and small and growing businesses face is having limited access to financing mainly due to their lack of business documentation and investment readiness. AP focuses on enabling businesses to scale and raise investment with the help of its catalytic financing and technical assistance.
AP provides patient-debt financing and tailored structure as per business need. Specifically, AP provides subsidized loans with an interest rate of between 8% to 14% per annum and lenient repayment terms and flexible collateral and grace period.
Who Can Apply?
Any startup that has been adversely affected by the COVID-19 pandemic and other uncontrollable events, can apply for our bridge financing program. We welcome applications from AP’s existing portfolio and pipeline businesses only. Whether you are facing financial difficulties, operational challenges, or require technical expertise to adapt your business model, our program is designed to support startups in need during these uncertain times.
Criteria for the Selection
The selection criteria for our bridge financing program are specifically designed for our portfolio and pipeline businesses to ensure that assistance is provided to startups that are most in need and have the potential for future growth. While specific criteria may vary based on the program, common factors considered include:
- COVID-19 Impact: Startups significantly affected by the pandemic, such as experiencing financial distress, supply chain disruptions, or reduced customer demand.
- Viability and Potential: Startups with a solid business model, growth potential, and demonstrated ability to adapt to changing market conditions.
- Financial Need: Startups facing funding gaps or limited access to traditional financing options due to the pandemic.
- Innovation and Scalability: Startups that offer innovative products, services, or technologies with the potential for scalability and long-term success.
Requirements for Due Diligence
To conduct due diligence and assess the disruption caused by COVID-19 and other events, several documents and information may be required from the business. These may include:
- Financial Statements: Provide financial statements for the pre-pandemic period and the period affected by COVID-19. This will help evaluate the impact on revenue, cash flow, and profitability.
- Documentation of Disruptions: Provide any relevant documentation that demonstrates the impact of COVID-19 or flood on the startup’s operations, such as canceled contracts, supply chain disruptions, or government-imposed restrictions.
- Employee Records: Provide records of employee layoffs, furloughs, or reductions in working hours during the pandemic. This can include termination letters, payroll records, or any relevant communication with employees.
- Fixed Expense Records: Maintain records of fixed expenses incurred during the period of business shutdown, such as rent, utilities, insurance, or other contractual obligations. Include copies of bills, invoices, or payment receipts.
