Getting A Bridge Loan For A Commercial Property

What is a commercial bridging loan?

In the wider sense, a bridge loan is a short-term financial solution – used with the intent to “bridge a gap”.

Commercial bridging loans follow suit, but are specifically defined as a bridge loan secured by property for commercial use, or investment properties that will become a commercial use property – for instance;

This, of course, is not an exhaustive list. There are many purposes and flexible applications for a commercial bridging loan. But ultimately, it is a type of borrowing used often to purchase office blocks or spaces, to refinance property assets associated with a business such as a farm, or industrial site. The capital raised can even be used to solve a short-term cash flow within a business. 

Why take out a commercial bridging loan?

The speed at which you can apply for, and have the loan amount in hand, is what draws property investors and businesses into applying for a commercial bridging loan – it is the best short-term solution and one that can help growth while long-term solutions are found. A commercial bridging loan can be used for: 

The uses of commercial bridge loans are varied and flexible enough to suit the needs of any business or investor, but it is important to keep in mind the potential risks associated with it.

What are the risks?

Commercial bridge loans are best suited to those with experience, especially true for property investors and those who may have built up a large portfolio of properties already for commercial purposes.

If you intend to find a commercial bridging loan best suited to you, then we can help find the right lender and guide you through the process. As commercial bridging loans are unregulated, it means lenders have specific terms unique to them, and not standard terms set across the board.

Therefore, those interested in such a loan will need to have a solid repayment strategy; this is typically in the form of a property sale, or from refinancing to a commercial mortgage in necessary. Or it could be repaid from the business directly, quickly and without worry about mounting costs – bridge loans often have the option to “roll-up” interest payments, so interest is only paid for the duration of the loan outstanding.

How much can you borrow?

How much you can borrow will depend on the loan-to-value (LTV) – this is the value of your property or asset expressed as a percentage of the lender's willingness to provide funding. 

The value of the assets you plan to offer as security must be sufficient to cover the loan - taking into account interest payments or additional fees. For example, a loan for the refurbishment of a commercial property would be secured against the property that requires work, which is then sold, or re-financed into a commercial mortgage loan to then be repaid via the proceeds. 

Depending on additional security, you can borrow up to 100% LTV. However, typically the maximum LTV is 85%, and from commercial finance lenders, you can secure £50,000 to £25m

You can use our bridge loan calculator to get an initial quote on the overall cost of a commercial bridge loan. 

How quickly can I secure a loan to finance a commercial property?

Depending on the complexity of your case and circumstances, we can get you a decision in principle after the application process – typically, within days. 

Generally, you can expect funds to appear in your account within 7-14 days, but sometimes they may be released even sooner.

Need a bridge loan for commercial property?

With our knowledge and experience base, we can secure clients' commercial loans with low rates and with market-leading bridge loans from £50,000 to £25m 

We have access to specialist lenders across the short-term market and can get you a decision in principle quickly.

What we can offer: 

How we can help: