Best Commercial Bridge Loans in September 2026

What is a commercial bridge loan?

Commercial bridge loans are a type of temporary short-term business funding. These loans act as a “bridge” — hence the name — to help cover a funding gap in the interim until you secure more permanent financing. Because of this, bridge loans are typically repaid in several months to a few years, a much shorter time frame than many other types of small business loans.

Lenders that may offer bridge loans include online or alternative lenders and hard money business lenders. Bridge loans are less commonly offered by a credit union or a bank. Once you qualify, funding is usually provided within a week, but it may take longer if the loan is secured by commercial real estate.

How do commercial bridge loans work?

Here’s a closer look at how this type of financing usually works.

Interest-only payments

During the loan term, the borrower usually makes interest-only payments. The principal balance may then be due as a lump-sum (or balloon payment) at the end of the loan term. At that point, the borrower can either pay the balance in full or refinance it into a new loan.

Collateral and asset-based underwriting

Bridge loans generally use commercial property as collateral by way of a mortgage or deed of trust, protecting the lender if the borrower defaults on the loan. Most bridge lenders will consider the property’s value and the borrower’s exit plan. This is why there may be more leeway with bridge loans when it comes to credit requirements.

What can you use a commercial bridge loan for?

A commercial bridge loan can be used for a variety of reasons. That typically includes the following:

Buying commercial real estate on a tight timeline

This type of short-term financing is commonly used to purchase new commercial real estate, especially when you need to act quickly to stabilize your company’s income or take advantage of current market conditions. Business owners who have a clear exit plan can use a bridge loan to cover the gap.

Renovating or repositioning a property

Bridge loans can also help when renovating an existing commercial property. That may involve making necessary repairs or completing aesthetic upgrades, investments that could boost revenue down the line. This option may be attractive to business owners who fix and flip commercial properties.

Bridging the gap to SBA or long-term financing

It can take time to receive proceeds from an SBA loan — sometimes up to 90 days. In the meantime, a bridge loan can get you over the hump and provide funding to keep your business operational. Once your other financing comes through, you can use it to satisfy the bridge loan. 

Covering short-term cash flow needs

Aside from real estate, business owners can also use a commercial bridge loan to buy equipment or inventory, provide working capital, complete a business acquisition and more. But you’ll want to compare your financing options to ensure that a bridge loan will get you the best rate and term.

Commercial bridge loan rates and fees

Every lender is different, so rates and fees on bridge loans can vary. Some lenders put their interest rates in monthly terms — for example, 1.00% per month. That can make it tricky to compare the actual costs against other lenders. Some lenders don’t disclose their rates at all, which means you’ll need to contact them directly for more information.  

You may see lenders tie their rates to a benchmark interest rate, such as the Secured Overnight Financing Rate (SOFR), then add on an additional percentage range. Either way, commercial bridge loans often have higher interest rates than other business loans.

Commercial bridge loan requirements

Each commercial bridge loan lender has its own eligibility requirements. You can expect most to consider the following factors:

Collateral and loan-to-value (LTV) ratio

This type of financing generally uses a piece of commercial property to secure the loan. How much you can actually borrow will depend largely on the property and the lender. Some may allow you to finance up to 75% of the property’s value. However, the LTV ratio may be lower for certain types of properties.

Exit strategies

Most lenders want to ensure that the borrower has a plan to satisfy the loan when the term ends. That might involve:

Credit score

It is possible to get a bridge loan with poor credit. Some lenders allow credit scores as low as 500. In some cases, your collateral and business plan may be enough to make up for less-than-perfect credit. But underwriting varies, and some lenders may still require a credit score of at least 680.

Time in business and revenue

Some commercial bridge lenders may approve a business owner who’s only been operating for six months. Others may require more time in business. The problem is that many lenders do not disclose these requirements, which can make it difficult to compare your options. You may need to contact lenders directly for clarity.

Where to get a commercial bridge loan

Online and alternative lenders

iBorrow and Fundible are two examples of online lenders that offer commercial bridge loans. These kinds of lenders can provide quick financing and more flexible credit requirements, but it can be difficult to find online and alternative lenders that disclose their eligibility criteria and fees.

Private and hard money lenders

Hard money lenders receive funding from private lenders and investors. Credit criteria may be more flexible because lenders generally focus more on the collateral securing the deal. Loan closings can also happen quickly, but hard money lenders tend to charge higher interest rates.

Banks and credit unions

Banks may offer competitive interest rates, but commercial bridge loans aren’t always easy to get. Banks generally have longer funding times and more rigid eligibility requirements. Credit unions often have lower loan limits. 

Commercial bridge loans vs. hard money loans

Use a bridge loan if: Your business plan is strong and you don’t need to close the deal immediately. In this case, you might get the best rate and term with a commercial bridge loan from a more traditional lender.

Use a hard money loan if: You need to close a property deal quickly, especially if it needs work. Traditional lenders are usually more hesitant to finance fix-and-flip properties.

Pros and cons of commercial bridge loans

How to get a commercial bridge loan

1. Map your funding gap and exit plan

Before you start comparing lenders, you’ll want to clarify:

2. Gather your documents

Every lender is different, but your bridge loan application may require the following documents:

However, you may not need this much information at the beginning of the process. Some lenders may only need recent bank statements and documentation of your loan repayment source — like a contract or purchase agreement, for example. 

3. Compare lenders and offers

The next step is to compare different commercial bridge lenders, which may include the ones listed above. Here are some important things to look at:

4. Apply

When you’ve decided on a lender that feels like a good fit, it’s time to start the application process. Many small business lenders accept loan applications online, though some may require a phone call or in-person meeting to kick things off.

5. Close and receive funding

During the underwriting process, your lender will analyze everything you’ve provided. If you’re buying commercial real estate, the property itself will also need to be examined. Most commercial bridge lenders require an on-site tour of the property. Some may send their own representatives, while others may rely on third-party appraisals. 

If all goes well, your lender should guide you through the closing process. Closing on a commercial bridge loan can take as little as a couple of weeks, depending on the lender.

Alternatives to commercial bridge loans

Short-term business loans

This may be a good option if you aren’t looking to purchase real estate. In this case, a short-term business loan could provide working capital or cover a temporary funding gap. However, loan amounts are often smaller. Interest rates also vary.

Working capital loans

Like a short-term business loan, a working capital loan will likely have lower borrowing limits. You can also expect the lender to examine your business financials, including your revenue and cash flow. Working capital loans can be secured or unsecured, and you may receive funding in as little as 24 hours.

Business lines of credit

The main benefit of a business line of credit is that you can borrow against your credit line as needed, and you’ll only owe interest on the amount borrowed. That flexibility can come in handy if you’re experiencing a temporary setback and aren’t sure how much money you need.

SBA loans

SBA loans are known for their competitive interest rates and high borrowing limits, but the application process takes time. That might not be a problem if you plan ahead. Just know that the eligibility criteria and credit requirements are generally stricter than a commercial bridge loan.

Commercial real estate loans

Bridge loans offer short-term financing, while commercial real estate loans have longer timelines — sometimes up to 30 years. Interest rates also tend to be lower than a commercial bridge loan. The trade-off is that it will likely take longer to close on a traditional commercial real estate loan than a commercial bridge loan.