Although the best commercial bridge loan depends on your specific needs, many will have a combination of competitive rates, flexible repayment terms, and funding speeds as fast as several days. Depending on the strength of your credit and finances, the best lenders may also have flexible eligibility criteria.
I have researched multiple companies offering commercial bridge loans and narrowed down the best commercial bridge loans to the seven lenders listed below. Each excels in different areas, so you should be able to find one suited to your needs.
- RCN Capital: Best overall for rates and flexible terms
- Commercial Loan Direct: Best for easy qualification requirements
- SBG Funding: Best for custom loan terms
- National Funding: Best for customer service
- Clopton Capital: Best for multiple loan options
- Bloomfield Capital: Best rates for short-term loans
- AVANA Capital: Best for well-qualified businesses
Best Commercial Bridge Loans at a Glance
Estimated Starting APR | Maximum Loan Amount | Maximum Repayment Term | |||
|---|---|---|---|---|---|
 | 9.99% | $10 million | 18 months; extensions available | 75% | 1.20× |
 | 6% to 14% | At least 36 months; extensions available | 80% | 1.00× | |
 | 24% | $1 million | 24 months | Not stated | Not stated |
 | 15% | $500,000 | 16 months | Not stated | Not stated |
 | 7.5% | $100 million+ | 60 months with extensions | 80% | 1.20× recommended |
 | 7% | $30 million | 36 months | 75% | 1.20× recommended |
 | 7% | $20 million+ | 36 months | 75% | 1.40× recommended |
RCN Capital: Best Overall for Rates & Flexible Terms
| |
Rates & Terms | |
Estimated APR | 9.99% and up |
Loan Amount | $50,000 to $10 million |
Maximum LTV | 75% |
Repayment Term | 12 to 18 months; extensions available |
Repayment Schedule | Monthly |
Fees & Closing Costs | Not stated |
Funding Speed | 7 to 21 days |
Qualifications | |
Credit Score | 620 |
Time in Business | Not stated |
Revenue | Varies |
DSCR | 1.20× but may vary |
Why I Like RCN Capital
RCN Capital was my pick for the best overall commercial bridge loan provider because of its comprehensive product offerings, range of eligible property types, and combination of rates and terms. It offers short-term bridge loans and fix-and-flip financing options for single-family and multifamily properties.
Purchase, rate-and-term refinance, and cash-out refinance options are available, and while repayment terms generally max out at 18 months, you have the flexibility of term extensions if needed.
Although RCN Capital has a wide range of product offerings, each has its own set of rates, terms, and qualification requirements. Your eligibility can vary based on the level of experience you’ve had as an investor. As a result, it can be difficult to identify the product best suited for you and understand your chances of getting approved.
To make this process easier, however, the RCN Capital team can guide you through the process after you apply. I read through multiple online reviews of the company. In addition to consistently high reviews from former clients, I found that many were happy with the level of expertise, professionalism, and speed at which they could get questions answered.
RCN Capital’s website provides options for interested borrowers to call, fill out an online form to receive a callback for more information, or start the process.
Commercial Loan Direct: Best for Easy Qualification Requirements
 | |
Rates & Terms | |
Estimated APR | 6% to 14% |
Loan Amount |
|
Maximum LTV | 80% |
Repayment Term | 12 to 36 months; extensions available |
Repayment Schedule | Varies |
Fees & Closing Costs | Varies based on the loan program |
Funding Speed | 10 to 30 days |
Qualifications | |
DSCR | 1.00× to 1.25× recommended |
Time in Business | Varies, but 2 years minimum is recommended |
Why I Like Commercial Loan Direct
Compared with the other commercial bridge lenders in this guide, Commercial Loan Direct has the lowest DSCR requirement, which is why I selected it as the best option for those looking for flexible qualification requirements. And while there are no hard minimums for time in business, having at least two years of experience is recommended, especially if your credit and finances are not particularly strong.
With the exception of land, Commercial Loan Direct offers bridge financing products for a wide range of property types. It offers three main programs: small apartments, mid-to-large apartments, and other commercial properties. In general, eligible properties include office, industrial, retail, self-storage, hotels, and motels.
One main benefit of working with Commercial Loan Direct is that bridge loan borrowers can easily transition to permanent financing using the company’s own conventional loan programs. Since funding would be kept with the same company, many borrowers could also benefit from discounted rates and fees upon exit.
Visiting Commercial Loan Direct online will reveal options to open an online chat or complete a form to receive a callback for a quote to start the process.
SBG Funding: Best for Custom Loan Terms
| |
Rates & Terms | |
Estimated APR | 1.92% per month |
Loan Amount | Up to $1 million |
Repayment Term | 6 to 24 months |
Repayment Schedule | Weekly, monthly |
Fees & Closing Costs | Not stated |
Funding Speed | 24 to 48 hours |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Revenue | $350,000 annually |
DSCR | Not stated |
Why I Like SBG Funding
In contrast to most other lenders, SBG Funding can better structure your loan payments to suit your business needs. For that reason, I selected it as the best option for those looking to get a custom repayment plan, which can include adjustments to your payment frequency, length, amount, and even the ability to defer payments for up to 90 days.
Funds from an SBG Funding bridge loan can be used for nearly any business expense. Examples include bidding on new jobs, paying bills, covering payroll expenses, or restocking inventory. Prepayment discounts are also available if you’re inclined to pay off the loan early to save on interest expenses.
Interested borrowers should note that although SBG Funding boasts a high approval rate of 85%, meeting the minimum requirements does not guarantee approval. In fact, a representative I spoke with stated that you should have compensating factors to offset any weaknesses in your loan application to boost your approval odds.
Visit the SBG Funding website to apply.
National Funding: Best for Customer Service
 | |
Rates & Terms | |
Estimated APR | 15% and up (factor rates as low as 1.11×) |
Loan Amount | $5,000 to $500,000 |
Repayment Term | Up to 16 months |
Repayment Schedule | Daily, weekly |
Fees & Closing Costs | Varies |
Funding Speed | As fast as same day as approval |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Revenue | $250,000 annually |
DSCR | Not stated |
Why I Like National Funding
National Funding offers a high level of service. After applying, you’ll be paired with a funding specialist who can provide a second set of eyes to ensure you get the type of loan best suited to your needs.
The provider offers bridge loans for almost any business expense. This can be helpful if you have a cash flow shortage and are waiting for funds from another source. Some examples of eligible uses of funds include operational expenses, debt payments, and satisfying payroll.
One thing to keep in mind, however, is that meeting the minimum requirements listed above does not guarantee approval. The best rates are also typically reserved for well-qualified businesses, and most of the clients that this provider works with are already performing well, have demonstrated consistent growth, and simply need funds to continue expanding.
Visit National Funding online to speak to a funding specialist or get funding options.
Clopton Capital: Best for Multiple Loan Options
| |
Rates & Terms | |
Estimated APR | 7.5% and up |
Loan Amount | $1 to over $100 million |
Maximum LTV |
|
Repayment Term | Up to 60 months with extensions |
Repayment Schedule | Interest-only with balloon payment |
Funding Speed | 10 to 30 days |
Qualifications | |
Eligible Properties | Multifamily, office, retail, industrial, hotels, self-storage, mixed-use, mobile home parks |
DSCR | Varies, but 1.20× is recommended |
Time in Business | 2 years recommended |
Why I Like Clopton Capital
Clopton Capital is a loan broker, which means it can provide multiple financing options. Its team also has the expertise to present your business in a way that improves your chances of approval.
Using a broker can save time when applying 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. You could see rates as low as around 7.5%, depending on your business qualifications and finances. Even after fees and other closing costs have been considered, estimated APRs are still among the most competitive on our list.
Compared with other companies in this guide, Clopton Capital offers one of the largest funding amounts at $100 million and up and one of the longest repayment terms. Most of its loans are structured as nonrecourse financing, meaning the lender cannot take possession of any other property if you default.
To learn more or to apply, you must call or complete an online form requesting a callback. The provider does not currently accept online loan applications.
Bloomfield Capital: Best Rates for Short-term Loans
| |
Rates & Terms | |
Estimated APR | 7% to 11% |
Loan Amount | $3 to $30 million |
Maximum LTV | 75% |
Repayment Term | 6 months to 3 years |
Repayment Schedule | Interest-only with balloon payment |
Fees & Closing Costs | 1% to 4% origination fee |
Funding Speed | 14 to 30 days |
Qualifications | |
Eligible Properties | Multifamily, retail, office, mixed-use, senior housing, self-storage, hospitality, industrial, and more |
DSCR | Varies, but 1.20× is recommended |
Time in Business | Varies, but 2 years is recommended |
Why I Like Bloomfield Capital
Bloomfield Capital can offer some of the lowest rates in our guide, and you’ll have a better chance of getting the best rates by selecting a shorter loan term. It’s also highly competitive in the loan amounts offered, repayment terms, and qualification requirements.
The lender offers bridge loans for different types of properties. Funds from its commercial real estate bridge loans can be used for various purposes, such as acquiring property, financing costs for construction or a rehabilitation project, and buying out another owner.
One downside of this provider is that it charges 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, typically anywhere from 1% to 4% of the loan amount.
To apply, you can call or email the lender using the contact information 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.
AVANA Capital: Best for Well-qualified Businesses
 | |
Rates & Terms | |
Estimated APR | 7% to 12% |
Loan Amount | $500,000 to over $20 million |
Maximum LTV | 75% (as-complete value) |
Repayment Term | 12 to 36 months |
Repayment Schedule | Interest-only with balloon payment |
Fees & Closing Costs | Varies |
Funding Speed | As fast as 10 days |
Qualifications | |
Eligible Properties | Hospitality real estate, healthcare facilities, retail stores, restaurants, and more |
DSCR | Varies, but 1.40× is recommended |
Time in Business | Varies, but 3 years is recommended |
Why I Like AVANA Capital
AVANA Capital can issue funding in as fast as 10 days. That’s the quickest of the lenders listed in our guide, making it a good option if you need to move quickly on a property.
It can issue bridge loans for businesses in a variety of industries. Funds 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 over $20 million are available, with interest-only payments for up to three years.
One of the downsides of AVANA Capital is that it can be more difficult to qualify. It’s recommended that you have at least three years’ time in business and a DSCR of 1.40× or greater.
Submit a request for a bridge loan online.
How I Chose the Best Commercial Bridge Loans
In determining where to get commercial bridge loans, I considered the following:
- Interest rates and estimated APR
- Loan amounts offered
- Repayment term and availability of loan extensions
- Eligible property types
- Qualification requirements such as DSCR and prior investment experience
- Maximum LTV ratios
- Funding speed
- Customer reviews and ratings
Alternatives to Commercial Bridge Loans
If you’re unsure if a commercial bridge loan is right for you, there are additional types of financing you can consider. Other types of loans can have more competitive rates, easier eligibility criteria, or smaller down payment requirements. If you’re having trouble getting approved, I recommend reading our tips on how to get a small business loan.
- Fix-and-flip loan: Like bridge loans, the best fix-and-flip loans are generally used for lower-cost projects.
- Hard money loan: A hard money loan is another type of short-term financing that’s often considered a last resort. It can be easier to get, but it comes at the cost of higher rates and fees. However, it could be a good choice if you can’t get approved elsewhere.
- Private money lenders: A private money lender can offer short- and long-term financing. Eligibility criteria can also be easier to satisfy than banks, although rates and fees will typically be higher.
- Cash-out refinance: If you have another property with a sufficient amount of equity, a cash-out refinance can allow you to tap into that equity for funding. This type of loan can also be easier to get as it uses different eligibility criteria than most commercial bridge loans. RCN Capital offers cash-out refinance programs up to $2 million for most residential properties.
Frequently Asked Questions (FAQs)
Most commercial real estate bridge loans only require you to pay the accrued interest on the loan each month. As a result, the principal balance of your loan will remain unchanged. At the end of the loan term, you’ll be expected to make a balloon payment, a lump sum payment that will pay the loan balance in full.
Many investors and borrowers pay off a commercial bridge loan by refinancing it into a permanent type of loan. Permanent loans have a longer repayment period, generally 10 to 30 years.
You should consider a commercial bridge loan if you don’t qualify for permanent financing from banks and want to acquire or conduct improvements on a 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. Commercial real estate loan 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.
Most commercial real estate bridge loans have a repayment period shorter than 36 months. However, some lenders allow for extensions. For example, some of the lenders we selected in our guide carry payment terms of up to five years when payment extensions are taken into consideration.
Bottom Line
The best commercial bridge loans will give you short-term financing for your real estate investments. These loans typically have to be repaid within 36 months or less, so you’ll want to have a plan for either paying them off or replacing them with a more permanent source of financing. Rates and terms vary among lenders, so we recommend shopping rates with multiple providers before deciding.
