WE ARE LEADERS IN BRIDGE LENDING.
When opportunity strikes, choose the right lending partner who can provide the type of bridge funding you need when you need it! What type of Bridge Loan do you need for your opportunity? Whether you need to acquire an asset, restructure an organization, buyout a partner, or do a cashout refinance, we’re here to help you get the capital you need on a timeline our competitors can’t match.
WHAT ARE COMMERCIAL BRIDGE LOANS?
Commercial bridge loans are a type of short-term financing available to businesses needing capital. Bridge loans—also referred to as bridge financing, hard money loans, or gap financing—are used particularly to finance an immediate opportunity, often in real estate. As the name implies, commercial bridge loans are used to “bridge the gap” between a business’ immediate funding need and a longer-term financing solution.
Commercial bridge lending can be used for many different reasons including:
- Real Estate Acquisitions (for commercial purposes)
- Cash Out Refinance
- Partner or Equity Member Buy Out
- Equipment Acquisitions
- And more!
With these common use cases of commercial bridge loans, it is important to keep a few key points in mind:
- Commercial bridge loans are short-term; often between 6 –36 months.
- Hard Assets (collateral) are leveraged to secure these loans – like real estate or equipment.
- How assets are valued can change depending on the asset, but often will be based on Forced Liquidation Value.
- Bridge loans often close much faster than other types of loans.
Bridge Lending Terms –Deals vary by asset and lending request:
- 1st Lien – Security
- 65% Loan to Value
- $250k – $2mm – Loan Size
- 6 months – 12 months – Loan Term
LEARN MORE ABOUT THE DIFFERENT TYPES OF COMMERCIAL BRIDGE LOANS THAT WE CAN STRUCTURE FOR YOU!
If you’re working to acquire bridge funding or capitalize on an opportunity on an urgent timeline, call Commercial Capital BIDCO today! We would love to structure a creative and unique deal that suits your business funding needs.
CASH-OUT REFINANCE
A Cash-Out Refinance is a great option for businesses needing operating capital for only 6 – 12 months. We know how to structure deals quickly so that you can tap into your equity and leverage it in your business. Cash-Out Refinancing is simply a way to take the existing equity out of your commercial real estate and put it to work for you. Experienced business owners and commercial property investors use Cash-Out Refinancing as a tool to obtain funds for:
- Commercial property acquisition
- Commercial property renovation
- Operating Capital
- Expansion
- And much more!
SHORT-TERM REAL ESTATE LOANS
Short-Term Real Estate Loans are a type of financing used frequently by investors for commercial real estate acquisitions, partner buy-outs, funding property renovations or refinancing for a short term. Commercial property owners often have unique needs around real estate and may need to leverage existing equity to further expand their business or portfolio of properties.
This type of lending can be used to purchase commercial and residential property but must be used for commercial purposes. If you’re looking for a short-term bridge loan, here are a few key points to remember:
- Short-term real estate loans must be used for commercial purposes.
- These loans have shorter terms than more traditional real estate financing, often between 6 months and 24 months.
- Collateral (such as currently owned property) is used to secure this funding.
- These types of loans are generally fast to fund, but can have higher interest rates.
- Banks generally will not lend under these type of loan circumstances.
HARD MONEY LOANS
A Hard Money Loan is a type of loan that is secured by hard assets or real property. These loans are commonly used in commercial real estate transactions.
If you’re considering a hard money loan, here are the key points to remember:
- Hard Money Loans are most commonly used for commercial real estate acquisitions.
- A Hard Money Loan (a type of bridge loan) uses assets as collateral to secure funding.
- Hard Money Loans have shorter loan terms - often between 6 months and 24 months - and usually serve as an interim financing solution.