What is a Bridge Loan?

A bridge loan might be the right option if you need to finance a commercial real estate purchase or refinance an existing commercial real estate property.

How does a bridge loan work?

Bridge loans are short-term loans tied to the collateral offered by the loan recipient, often property or another business asset with determinable value. The loan amount will be a percent (%) of the asset’s value.

Most bridge loans offer a 6-24-month period before recipients must repay the loan. This makes them useful during periods of transition.

When should I pursue a bridge loan?

Bridge loans aren’t suitable for every business. They may be the right fit if you:

  • Need to refinance an existing commercial real estate property with an expedited loan process
  • Need a loan that can be approved and issued quickly – 10-20 business days if you’re working with Prescient Capital
  • Feel comfortable with relatively high-interest rates compared to other loans
  • Have a clear exit strategy identifying a path to refinance the loan at the end of the 6-24-month term

If you’re interested in requesting a short-term bridge loan or want to discuss your options with one of our financial experts, contact us today.

Let's Work Together

Get in touch with us and send some info about your situation.