Commercial Bridge Loans are a flexible type of loan that is intended to be a short-term loan. The goal of these loans is to provide interim funds for a business until either an exit-strategy or interim sales plan can be agreed to. This financing is not permanent, but can be used temporarily to do things like purchase property, complete renovations, or purchase equipment needed to help a business grow and improve.
This money can also help individuals who want to do things like a fix-and-flip project if you can find the right lender to help you with the project.
What Are Commercial Bridge Loans?
Commercial bridge loans are often called commercial mortgage bridge loans which are essentially real-estate loans that people use for short-term fixes. These loans are a great short-term option when longer-term options aren’t available. If your home needs a major renovation, these loans can work as well.
Another reason that might want to consider a commercial bridge loan is that you didn’t qualify for a traditional loan. Some of these reasons might include the following:
- Unsatisfactory occupancy rates
- Unsatisfactory borrower credit
- Needs for permanent financing
- Incomplete ownership or project team in place
Bridge loans usually have to be paid back anywhere from six months to three years of when they are taken out. Otherwise, the property must be sold or refinanced with a more permanent financing solution.
What Are Commercial Bridge Loans & How Do They Work?
Commercial Bridge Loans are a flexible type of loan that is intended to be a short-term loan. The goal of these loans is to provide interim funds for a business until either an exit strategy or interim sales plan can be agreed to. This financing is not permanent, but can be used temporarily to do things like purchase property, complete renovations, or purchase equipment needed to help a business grow and improve.
This money can also help individuals who want to do things like a fix-and-flip project if you can find the right lender to help you with the project.
