Commercial bridge loans are a flexible loan arrangement intended to provide short term financing until an exit strategy, like a refinance or sale, can be executed.
Commercial bridge loans act as interim funding, facilitating the purchase of commercial real estate and completion of rehabs or upgrades, but not acting as permanent financing. A commercial bridge loan provides financing to purchase a commercial property that’s in need of significant renovations or upgrades.
They can also be used by borrowers not yet able to qualify for permanent financing.
Bridge loans typically have repayment terms of between 6 months and 3 years, after which the property is either sold or refinanced with permanent financing.