Bridge financing – the key to businesses’ liquidity crisis

Bridge financing is the key to businesses’ cash flow problems. Lamna Financial co-founder Charles Meyerowitz, tells the Business Hour that bridge financing is a short term measure and is meant to help businesses pay service providers or get through a deal. He warns it shouldn’t be viewed as a long term measure. Meyerowitz says this difficult time that entrepreneurs are having will pass. He urges business owners to get help and hang on. The recent announcement by the International Monetary Fund (IMF) that it has revised South Africa’s growth outlook for 2021 upwards to 3,1% from 2,5% echoes sentiment on the ground that the economy is slowly picking up and that the general outlook for business and entrepreneurs is more positive.