$5,001 to $1,000,000
Undisclosed interest rate or fixed fee
3 to 60 months
A bridge loan from Rapid Finance can be used for a variety of purposes, with flexible terms ranging from 3 to 60 months and loan amounts up to $1,000,000.
The lender offers a quick and convenient online application with funding as soon as the same day. Given that Rapid Finance offers a variety of other loan products, a streamlined application for additional funding and has an excellent Trustpilot rating, it may be a good lending partner for a small business. However, the lender’s website is not transparent regarding rates and fees.
Rapid Finance doesn’t disclose specific criteria that borrowers must meet regarding minimum credit score or annual revenue. However, the lender notes that low credit does not necessarily mean your application will be denied. Rapid Finance requires three months of business bank statements from applicants, so your business must have at least three months of history.
$100,000 to $3,000,000
9.25%
12 to 24 months
Kiavi offers bridge loans for residential real estate up to four units, condos and planned use developments (PUD) with low down payment requirements — you can finance up to 95% of the purchase price, 80% of the after-repair value, and 100% of the rehab cost. Repayment terms are capped at 24 months, but you can refinance after 6 months, and the lender doesn’t charge prepayment penalties.
Kiavi’s bridge loans come with dedicated support that allows loans to close in as little as seven days, and the lender has excellent reviews on Trustpilot. Plus, Kiavi will work with new investors, though previous experience may get you a lower rate.
In order to qualify, you’ll need to meet Kiavi’s criteria of:
Up to $500,000
Undisclosed
4 to 24 months
If you need a small business loan to cover operating expenses, pay a tax bill or take timely action to expand your business while you wait for traditional financing (such as an SBA loan), a bridge loan from National Funding could be a good fit. Funding is fast, and the lender has a stellar reputation for customer service with a 4.8 star rating on both Trustpilot and LendingTree.
You can use the loan funds for a variety of needs across industries, choose a customized repayment schedule and receive a discount for early repayment.
Read our full National Funding business loan review.
In order to qualify, you’ll need to meet National Funding’s criteria of:
Up to $30,000,000
Undisclosed
12 to 36 months
Avana Capital offers pre-approvals in as little as three days, with relatively quick closings in as little as ten days, though some loans may take up to 30 days to close. Borrowers can enjoy interest-only payments for up to three years, and Avana claims to offer competitive rates but doesn’t disclose a minimum interest rate.
The lender offers loans up to $30,000,000 and finances up to 75% of the property’s after-repair value. The lender also boasts an experienced team of lending experts and an A+ BBB rating, though customer reviews are hard to find.
Avana Capital’s website doesn’t disclose borrower eligibility requirements, such as minimum credit score, minimum time in business, or minimum annual revenue.
$75,000 to $2,000,000
9.90%
6 to 12 months
Easy Street Capital doesn’t require an appraisal for its EasyFix bridge loans, and you can close in as little as 48 hours. The lender offers financing for both the purchase and renovation of single-family homes and two- to 10-unit residential properties. Repayment terms are limited to 12 months, but payments are interest only and extensions are available. There’s no prepayment penalty, but a $1,495 doc fee is required. You don’t need investing experience to apply, but you’ll need to put at least 20% down.
In order to qualify, you’ll need to meet Easy Street Capital’s criteria of:
$3,000,000 to $100,000,000 or more
9.00%
Up to 36 months
iBorrow is our top pick for large commercial real estate bridge loans because the lender offers loan amounts up to $100,000,000 (or more) with up to 75% LTV. Businesses can use the funding to meet a variety of needs, including recapitalization and value-add projects for any commercial property type.
iBorrow has extensive experience issuing a high volume of commercial real estate loans and services all loans in-house, providing support to all borrowers after funding is complete. The lender can close in as little as two weeks, but there’s no online application process.
iBorrow doesn’t disclose borrower requirements, such as a minimum credit score or time in business requirement, but the lender notes it will fund properties even if there is no cash flow.
$1,000,000 to $100,000,000 or more
LIBOR plus 250 (fixed or floating)
Up to 60 months
If you’re looking for a large commercial real estate bridge loan and want to compare rates and terms from multiple lenders, Clopton Capital might be the right choice. While the minimum loan amount is $1,000,000, Clopton’s partners offer a wide range of loan amounts, repayment terms and funding use cases, along with low starting interest rates and up to 85% LTC. However, there’s no online application, and funding times may vary. Since Clopton isn’t a direct lender, business owners should check the reputation of the lending partner before accepting a loan offer.
Eligibility criteria vary by lender and property. Clopton Capital doesn’t disclose a specific minimum credit score, time in business requirement or minimum revenue or experience requirement, but the broker notes you may need a positive credit history.
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 long-term financing. Because of this, bridge loans commonly need to be repaid in several months to a few years, a much shorter time frame than many other types of business loans.
The types of lenders who 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 in about a week, but it may take longer if the loan is secured by commercial real estate.
As you research commercial bridge lenders to find the best option for your business, consider the following factors:
| Pros | Cons |
|---|---|
| Faster funding than traditional bank business loans or SBA loans May prevent businesses from missing out on lucrative opportunities due to funding delays May be easier for real estate investors to qualify for than a traditional mortgage | May have higher interest rates than some other business loans Shorter terms, possibly with a balloon payment, which could hurt a business that doesn’t qualify for long-term financing Often secured, which puts an asset at risk |
Commercial bridge loans may have prepayment penalties depending on the lender. It’s always a good idea to check with the lender you’re interested in to see whether there are prepayment penalties or any other fees associated with the loan. However, not all lenders will have prepayment penalties and some may waive them if the bridge loans are refinanced.
With higher interest rates than other business loans, commercial bridge loans can be an expensive form of borrowing. Repayment terms for business bridge loans are also much shorter than traditional business loans, which means that you need to repay the loan much faster. Both the terms and rates can be an issue if you don’t secure another type of funding in time.
Interest rates for commercial bridge loans can vary from lender to lender. Your individual rate will also depend on factors such as your creditworthiness and business history. However, typical interest rates range from 9.5% to 12%. Some of the lenders we chose offer lower starting rates.
