7 Best Commercial Bridge Loans for 2023

We chose Bloomfield Capital as the best overall provider because of its competitive loan terms. It can offer some of the best rates on our list and is highly competitive in the loan amounts offered, repayment terms, and qualification requirements.

It offers bridge loans for different types of commercial properties. It allows funds to be used for a variety of purposes, such as acquiring property, financing costs for construction or a rehabilitation project, and buying out another owner. Loan amounts are available from $3 million and $30 million, with a maximum LTV of 75%.

One downside with this provider is that it does charge a prepayment penalty. Depending on the terms of your loan, this can apply within the first three to 12 months of getting the loan. Other costs include an origination fee that is typically between 1% and 4% of the loan amount.

To apply, you can call or email the lender using the contact information found on its website. It does not accept online applications, although the company typically responds to callback requests within 24 to 48 hours. Once you have begun the process, funding can occur within two weeks.

Kiavi offers bridge loans that can be used to fund repairs for real estate investment properties. It can offer funding in as little as 10 days, which is one of the fastest on our list of providers, making it our pick for borrowers who are looking to close deals quickly.

One of the reasons Kiavi can fund so fast is the fact that it can issue approvals with no appraisal requirement and no income verification. Eliminating these steps from the evaluation process saves time, allowing it to render a loan decision more quickly.

Funds acquired from a bridge loan can be used for a new purchase, delayed purchase refinance, or seasoned finance. Delayed purchase refinances can be used to replenish cash reserves that you used to improve the property while a seasoned finance allows you access to funding for a property you’ve owned for more than six months.

Kiavi requires a minimum credit score of 660 but can work with first-time investors. To learn more or apply, you can visit its website.

If you’re a real estate investor, Commercial Loan Direct has the lowest DSCR requirement and one of the highest allowable LTVs on our list of providers. This is why we consider them to be a good option for borrowers seeking easy qualification requirements.

This provider offers three different types of commercial bridge loans. Options include small apartment bridge loans, mid to large apartment bridge loans, and commercial bridge loans. Properties eligible for commercial bridge loans include industrial, warehouse, medical, mixed-use, office, retail, and self-storage real estate.

Fees, loan terms, and qualification requirements will vary depending on the type of loan you choose. For instance, it’s possible to qualify with a DSCR as low as 1.00x for small apartment bridge loans while commercial bridge loans can require a DSCR of 1.25x. Similarly, some loan programs will have additional requirements such as appraisal reports, environmental inspections, and proof of assets for reserves.

One benefit of working with Commercial Loan Direct is it can offer an easy transition to its own permanent financing products. In many cases, taking advantage of this option can result in discounted fees. It can also save you time and money from having to apply for financing elsewhere.

Quotes can be requested online. Commercial Loan Direct also provides an online chat, with customer support available via phone from Monday through Friday.

National Funding offers bridge loans that can be used for almost any business expense. This can be helpful if you have a shortage of cash flow and are waiting for the receipt of funds from another source. Some examples of eligible uses of funds include operational expenses, debt payments, and satisfying payroll.

The provider offers a high level of service. After applying, you’ll be paired with a funding specialist who can provide a second set of eyes in making sure you get the type of loan best suited to your needs. To be eligible for financing, you’ll need a minimum credit score of 600, be in business for at least six months, and have annual revenue of $250,000.

One thing to keep in mind, however, is that meeting the minimum requirements does not guarantee loan approval. The best rates are also typically reserved for well-qualified businesses, and most of the clients that this provider works with are typically ones that are already performing well, are not struggling financially, and simply need funds to continue expanding.

To learn more or to submit an application, you can visit the National Funding website.

Arbor Realty Trust is a good provider to consider if you’re looking for flexibility in your loan terms, such as the possibility of extensions or qualification requirements. It offers repayment terms of up to 36 months, with the possibility of an extension.

While there are other providers listed here that also offer extensions, Arbor does not have a hard limit and can be more flexible than other lenders. Its flexibility also extends to some of its qualification requirements. For instance, while it typically requires a DSCR of 1.25x, it can consider a lower figure for businesses with compensating factors such as reserves or guarantees.

To improve your chances of getting approved, properties should be located in areas with favorable economic conditions. This can include things like employment and population growth. If your loan is approved, funds can be used for the acquisition of a property, financing improvements or repairs, and debt buy-backs.

Businesses that are typically approved for financing through Arbor Realty Trust have an established track record and a business profile to support the type and loan amount being requested.

To begin the process or learn more, you can request a quote online.

AVANA Capital can issue funding as fast as 10 days. That’s the quickest out of the providers on our list, making it a good option if you need to move on a property quickly.

The provider can issue bridge loans for businesses in a variety of industries. It specializes in hospitality real estate, healthcare facilities, retail stores, and restaurants. Funds received from a bridge loan can be used for auction purchases, discounted payoff financing, property improvements, debt consolidation, and more.

Getting a loan through this provider means you could qualify for rates as low as 7%. Loan amounts are available up to $20 million and up, with interest-only payments for up to three years.

One of the downsides with this provider is it can be more difficult to qualify. It’s recommended that you have at least three years’ time in business and a DSCR of 1.40x or greater.

To apply, you can submit an online request for a callback.

Clopton Capital is a loan broker, which means it can provide you with multiple financing options. Its team also has the expertise on how to best present your business to improve your chances of getting approved.

Using a broker can save the time needed to apply separately to multiple lenders. While this convenience can sometimes come at the cost of higher rates or fees, that is not the case with Clopton Capital. Depending on your business qualifications and finances, you could see rates between 5.5% and 9%. Once fees and other closing costs have been considered, estimated APRs are still among the most competitive on our list.

Clopton Capital offers one of the largest funding amounts of $100 million and up. Repayment terms can also be among the longest on our list of 60 months with extensions. Most loans are structured as non-recourse financing, which means that the lender cannot take possession of any other property in the event you default.

To learn more or to apply, you will need to call or complete an online form requesting a callback. The provider does not currently accept online loan applications.

You should consider a commercial bridge loan if you don’t qualify for permanent types of financing from banks and want to acquire or conduct improvements on property. We talk more about this in our guide on what commercial bridge loans are and how they work.

Yes, getting a commercial loan can carry higher rates and fees. Rates typically range from 7% to 12%, with an additional 1% to 4% of the loan amount in closing costs and other fees. This can also vary depending on the type of loan you get. You can read more about how rates are determined in our article on commercial real estate (CRE) loan rates.

Bridge loans must typically be repaid within 36 months. In most cases, you can make interest-only payments during your repayment period. At the end of your loan term, you will need to make a lump sum payment to pay off the loan balance in full. Most borrowers accomplish this by getting funding from a long-term loan.