How to Find a Commercial Bridge Loan for Your Company
One frustrating part of business is when you see an opportunity but don’t have the financing to make it happen. Whether you need to make a balloon payment or see a great piece of property that would benefit your company, gaps in access to capital can mean you lose out on these opportunities. Fortunately, a commercial bridge loan may be able to help.
What is a commercial bridge loan?
This type of loan is intended to provide a temporary loan for commercial property. These loans provide short-term access to funds to take advantage of an opportunity to acquire property when funds are not available in time, such as for high-demand property or a short window of sale. However, these loans can also be used for some interim task for the company that funds are needed to complete, such as paying a balloon payment. This short-term financing option can help your business achieve a goal in a short time frame, knowing that it can be repaid in the near future. Because these are short-term loans, they are considered to be riskier than other types of financing.
Who needs a commercial bridge loan?
Not every business needs a commercial bridge loan when there’s a short-term opportunity. However, there are reasons your business may benefit from this type of financing.
- There is a gap between access to financing and the time frame for a business opportunity, such as purchasing commercial real estate
- You need to complete an interim task (such as a balloon payment) and need access to short-term financing
If this sounds like your business, a commercial bridge loan may be a good financing option for you.
How to get a commercial bridge loan
If you decide that a bridge loan is what you need, you can reach out to a bank, credit union, or other financial institution to get more information and fill out an application. The application process will examine your current financial status, including your likely ability to repay the loan, and determine your eligibility. Through the application process, be sure to pay close attention to the terms of repayment so there are no surprises later on.
Whether you want to purchase property that’s only available for a short period of time or make a balloon payment, a commercial bridge loan may be just what you need. By learning more about this type of financing and how it can help you, your business can move closer to achieving your long-term goals.