The best commercial bridge loans will have low rates and fees. Although bridge loans are short-term in nature, many of the best will provide options to extend the repayment term for up to five years or more. The best lenders will also have a combination of excellent customer service, offer funding speeds as fast as 10 days, and carry flexible qualification requirements.
If you’re unsure where to get commercial bridge loans, here are our picks for the best lenders:
- Kiavi: Best overall for fast funding and competitive rates
- National Funding: Best for customer service
- SBG Funding: Best for custom loan terms
- RCN Capital: Best multifamily bridge financing
- Bloomfield Capital: Best rates for short-term loans
- Clopton Capital: Best for multiple loan options
- Commercial Loan Direct: Best for easy qualification requirements
- AVANA Capital: Best for well-qualified businesses
Best Commercial Bridge Loans at a Glance
Estimated Starting APR | Maximum Loan Amount | Maximum Repayment Term | |||
|---|---|---|---|---|---|
 | 9.25% | $3 million | 24 months | 95% | Not stated |
 | 15% | $500,000 | 16 months | Not stated | Not stated |
 | 24% | $1 million | 24 months | Not stated | Not stated |
 | 10.24% | $2.5 million | 18 months; extensions available | Not stated | |
 | 7% | $30 million | 36 months | 75% | 1.20× recommended |
 | 7.5% | At least $100 million | 60 months with extensions | 80% | 1.20× recommended |
 | 6.50% to 14.50% | At least 36 months; extensions available | 1.00× | ||
 | 7% | At least $20 million | 36 months | 75% | 1.40× |
Kiavi: Best Overall for Fast Funding and Competitive Rates
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Rates & Terms | |
Estimated APR | 9.25% |
Loan Amount | $100,000 to $3 million |
95% LTV, 80% ARV | |
Repayment Term | 12, 18 & 24 months |
Repayment Schedule | Monthly |
Fees & Closing Costs | 1.5% to 2% of the loan amount |
Funding Speed | As fast as 10 days from time of application |
Qualifications | |
Credit Score | 660 |
Prior Flipping Experience | Not required |
DSCR | Not stated |
Why We Like Kiavi
It’s rare to find a lender that beats the competition in every category, but Kiavi comes close. The competitiveness of its rates, terms, streamlined lending process, and flexibility in eligibility criteria make it our pick as the best overall provider for a commercial bridge loan.
With Kiavi, you can close in as little as 10 days. The company uses a tech-driven approach to streamline much of its lending processes, allowing for approvals to be issued quickly. Paperwork can also be minimal, as eligible businesses can get funding without the need to provide income documentation or an appraisal of the property being financed.
Bridge loans from Kiavi can be used for three main purposes:
- To purchase a home
- To replenish your cash reserves by refinancing an existing property
- To refinance a property you’ve held for more than six months if you need additional financial support
Visit the Kiavi website to learn more or to apply. There are no application or upfront fees, and you can get an online pre-qualification with no impact on your credit score.
National Funding: Best for Customer Service
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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 We 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 that can be used for almost any business expense. This can be helpful if you have a shortage in cash flow and are waiting for receipt of 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 ones that are already performing well, have demonstrated consistent growth, and simply need funds to continue expanding.
To learn more or to submit an application, you can visit the National Funding website.
SBG Funding: Best for Custom Loan Terms
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Rates & Terms | |
Estimated APR | 24% (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 | As fast as same day |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Revenue | $350,000 annually |
DSCR | Not stated |
Why We Like SBG Funding
SBG Funding has a low maximum funding amount. However, it’s still an excellent option because of the lender’s commitment to providing excellent customer service and its ability to issue custom loan terms, competitive rates, and fast funding speeds.
It offers an unrestricted bridge capital lending product that can be used for a number of business purposes. Some examples include bidding on jobs, covering vendor expenses, and purchasing materials.
With SBG Funding, custom loan terms extend beyond the typical adjustment of repayment lengths and payment amounts. Specifically, it’s one of the few companies that allows for payment deferrals. If your business has cash flow concerns, you can work with SBG Funding to get a payment plan that works with your company’s financial circumstances.
Visit the SBG Funding website to apply.
RCN Capital: Best for Multifamily Bridge Financing
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Rates & Terms | |
Estimated APR | 10.24% and up |
Loan Amount | $250,000 to $2.5 million |
Maximum LTV | • Purchase: 75% • Refinance: 70% • Cash-out refinance: 65% |
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 | 660 |
Time in Business | Not stated |
Revenue | Varies |
DSCR | Not stated |
Why We Like RCN Capital
RCN Capital offers multifamily bridge loans for apartment units greater than five units and mixed-use properties where residential space is at least 70% of the total square footage. While the company does list a minimum credit score, it may have some flexibility for borrowers with compensating factors and a good exit strategy.
Those who work with RCN Capital will find that costs are kept to a minimum. There are no upfront fees during the application process. However, if you decide to move forward in the lending process, you may have to pay for certain third-party fees for things like appraisals or environmental assessments. No prepayment penalties apply to its bridge loans, so you can conduct an early payoff to save on interest charges.
As part of the application process, be prepared to provide bank statements, copies of existing leases, renovation estimates, and other income documentation. You can head to the RCN Capital website to submit an online application.
Bloomfield Capital: Best Rates for Short-term Loans
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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 We 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 commercial properties. Funds can be used for a variety of 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 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 anywhere from 1% to 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.
Clopton Capital: Best for Multiple Loan Options
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Rates & Terms | |
Estimated APR | 7.5% and up |
Loan Amount | $1 to over $100 million |
Maximum LTV | • 80% loan-to-value • 85% loan-to-cost |
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 We Like Clopton Capital
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 as low as around 7.5%. Once fees and other closing costs have been considered, estimated APRs are still among the most competitive on our list.
Compared to other companies on our list, 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 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.
Commercial Loan Direct: Best for Easy Qualification Requirements
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Rates & Terms | |
Estimated APR | 6.50% to 14.50% |
Loan Amount | • Apartment Loans: $3 to over $30 million • Small Apartments: $1.5 to $5 million • Commercial Loans: $3 million and up |
Maximum LTV | • 80% for apartment loans • 75% for commercial loans |
Repayment Term | 12 to 36 months; extensions available |
Repayment Schedule | Interest-only with balloon payment |
Fees & Closing Costs | Varies based on loan program |
Funding Speed | 10 to 30 days |
Qualifications | |
Eligible Properties | Most commercial properties, with the exception of outlet malls and land |
DSCR | 1.00× to 1.25× |
Time in Business | Varies, but 2 years minimum is recommended |
Why We Like Commercial Loan Direct
Commercial Loan Direct offers bridge loans on a wide range of properties, such as offices, self storage units, hotels, motels, and assisted living real estate. It’s a good option if you’re having trouble getting approved elsewhere, as the lender’s DSCR requirement is the lowest in our guide.
The company offers three bridge loan programs. Loans are available for small apartments, medium to large apartments, and most commercial properties. The exact fees, rates, and eligibility criteria will vary depending on the loan program you choose.
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.
To begin the process, interested borrowers can complete a request for a callback from the Commercial Loan Direct website.
AVANA Capital: Best for Well-qualified Businesses
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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 We Like AVANA Capital
AVANA Capital can issue funding in as fast as 10 days. That’s the quickest out of the lenders on our list, making it a good option if you need to move on a property quickly.
It can issue bridge loans for businesses in a variety of industries. 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 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.
To apply, you can submit an online request for a callback.
How We Chose the Best Commercial Bridge Loans
In determining where to get commercial bridge loans, we 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, we recommend reading our tips on how to get a small business loan. Otherwise, here are some other loan types you can consider:
- Fix and flip loan: Although similar to bridge loans, fix-and-flip financing options are generally used for lower-cost projects. Check out our recommendations for the best fix and flip loans.
- 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 compared to 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 is one provider that offers cash-out refinance programs up to $2 million for most residential properties.
Frequently Asked Questions (FAQs)
Most commercial 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, which is a lump sum payment that will pay off 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 are those with a longer repayment period, generally anywhere from 10 to 30 years.
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 loan rates.
Most 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 to fund 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.
