What is 90-Day Transactional Funding in personal finance?

I came across the term “90-day transactional funding” while researching personal finance, but I’m unsure what it means. Can someone please explain what 90-day transactional funding is in the context of personal finance? How does it work, and what are its potential benefits or drawbacks?

I’d appreciate any insights or information on this topic as I’m looking to expand my knowledge in the realm of personal finance.


Hi @leilalwriter

90-day transactional funding is a financial strategy often used in real estate investing and other businesses that involve short-term transactions. This method is designed to provide quick and convenient access to capital for a relatively short period, typically 90 days or less.

Here’s how it works:

Quick Financing: When investors or businesses need to acquire a property or close a deal but lack immediate funds, they can turn to 90-day transactional funding. It enables them to secure the necessary funds within a short timeframe.
Bridge Loan: Consider it a bridge loan – it covers the gap between the initial purchase and the subsequent sale of a property or asset. This funding is meant to be a short-term solution.
No Credit Check: One notable advantage is that 90-day transactional funding often doesn’t require a credit check or extensive documentation. Instead, it relies on the potential profitability of the deal.
Double Closing: The typical strategy involves two closings – the first to purchase the property and the second to sell it to the end buyer. The funds from the second closing are used to repay the transactional funding.
Costs and Fees: Remember that this convenience comes at a cost. Transactional funding providers charge fees or interest for using their funds, which can vary depending on the provider and the specific terms of the agreement.
Strict Timeline: Timing is crucial when using 90-day transactional funding. It’s essential to adhere to the agreed-upon timeline to avoid additional fees or complications.
Exit Strategy: Investors or businesses should have a well-defined exit strategy before using this type of funding. Ensuring the property can be sold or the deal closed within 90 days is important.

In summary, 90-day transactional funding is a financial tool to facilitate quick personal finance transactions, particularly in real estate and short-term investment scenarios. While it offers convenience and flexibility, it’s essential to understand the associated costs and have a clear plan to repay the funds within the specified timeframe.

Please note that the specifics of 90-day transactional funding can vary, so it’s advisable to consult with a financial advisor or legal expert to ensure it aligns with your specific financial goals and circumstances.