Is Commercial Bridge Loan Right for You? Find Out.

Securing a commercial loan can be a challenge, especially in a tight credit market. Worst still, your financial institution fails to close your loan on time, and you are left with stalled projects that may cost even higher than the initial cost. In such times, a commercial bridge loan comes in handy

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What is a Commercial Bridge Loan?

A commercial bridge loan, just like its name, is a commercial financing intended to bridge the gap until long-term funding is secured. A bridge loan is short-term (6 months -3 yrs) and can be used for assets like offices, retail centers, multi-family units, industrial development, or land development.

When securing a loan, you need to consider several factors, and commercial bridge loans are no exception. Now, let’s have a look at when you should consider applying for a bridge loan. 

When should you Apply for a Commercial Bridge Loan?

1. Securing a Property

If you plan to sell a property to buy a new one, you may need a commercial bridge loan to help you purchase the property before closing your old property sale.

2. Closing Time Critical Purchases

There is no enough time to secure traditional loans during bidding or real estate auction. Applying for a bridge loan can help fund your purchase. 

3. Relieve for Better Loan Terms

If you have a loan with unfavorable terms and are looking for temporary relief as you negotiate with your lender for better terms, a bridge loan can help you finance your real estate projects.

4. Avoiding Loan Foreclosures

When you have a loan that is almost due and is at risk of foreclosure, a bridge loan can offer temporary financing until a long-term solution is reached.

5. Revamping Property 

Acquiring an old property may require a revamp to improve its value before reselling it. A bridge loan can be a great pick for financing your project. 

Wrapping Up

Whether you have a sensitive purchase, want to renovate a property, refinance an existing loan, renovate a property, or secure better loan terms, you can never go wrong with a commercial bridge loan. At Countrywide Financial Solutions, we can help you secure commercial bridge loans with no balloon payments. Contact us today for more details.