7 Best Commercial Bridge Loans

A commercial bridge loan may offer the quick, short-term financing you need to avoid missing out on a profitable business opportunity.

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Commercial bridge lenders at a glance

Rapid Finance: Best commercial bridge loans for flexibility

$5,001 to $1,000,000

Undisclosed interest rate or fixed fee

3 to 60 months

Pros
  • Automatic payments with flexible terms
  • Can be used for real estate, expansion, or working capital
  • Fast funding and streamlined application for additional funding
Cons
  • Rates and fees undisclosed
  • Capped at $1,000,000
  • Requires 3 months of business bank statements

Why we picked it

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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.

How to qualify

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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.

Kiavi: Best commercial bridge loans for high-leverage fix-and-flip projects

$100,000 to $3,000,000

9.25%

12 to 24 months

*Loans are not available in Alaska, Delaware, Hawaii, Idaho, Iowa, Louisiana, Maine, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Utah, Vermont or Wyoming.
Pros
  • Offers high-leverage loans up to the full rehab cost
  • Opportunity to refinance after 6 months
  • Fast closing with no appraisal required
Cons
  • Commercial properties aren’t eligible
  • Only lends in 32 states and District of Columbia
  • Only three term options

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet Kiavi’s criteria of:

  • Minimum credit score: Undisclosed (prequalify with a soft credit check)
  • Minimum time in business: None
  • Minimum annual revenue: N/A

National Funding: Best commercial bridge loan for working capital

Up to $500,000

Undisclosed

4 to 24 months

Pros
  • Funding as soon as the next business day
  • Excellent reputation for customer service
  • Prepayment discounts
Cons
  • Low borrowing limits
  • Can’t be used to purchase real estate
  • Requires a call with a funding specialist

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet National Funding’s criteria of:

  • Minimum credit score: Undisclosed
  • Minimum time in business: 6 months
  • Minimum annual revenue: $250,000

Avana Capital: Best fast commercial bridge loans for commercial real estate

Up to $30,000,000

Undisclosed

12 to 36 months

Pros
  • Fast closing timeline
  • Interest-only payments
  • Opportunity to refinance
Cons
  • Undisclosed rates
  • Undisclosed eligibility requirements
  • Customer reviews are few and far between

Why we picked it

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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.

How to qualify

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Avana Capital’s website doesn’t disclose borrower eligibility requirements, such as minimum credit score, minimum time in business, or minimum annual revenue.

Easy Street Capital: Best for fast commercial bridge loans for fix-and-flip properties

$75,000 to $2,000,000

9.90%

6 to 12 months

Pros
  • Very fast closings with no appraisal required
  • No prepayment penalties
  • Lenient credit requirements
Cons
  • Relatively short terms
  • Relatively high down payment requirements
  • High upfront doc fee

Why we picked it

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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.

How to qualify

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In order to qualify, you’ll need to meet Easy Street Capital’s criteria of:

  • Minimum credit score: 600
  • Minimum time in business: None
  • Minimum annual revenue: N/A

iBorrow: Best commercial bridge loans for large loan amounts

$3,000,000 to $100,000,000 or more

9.00%

Up to 36 months

Pros
  • Large loan amounts
  • In-house loan servicing
  • Generous LTV ratio
Cons
  • Prepayment penalties
  • No online application
  • Requires on-site tour

Why we picked it

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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.

How to qualify

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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.

Clopton Capital: Best commercial real estate bridge loans from a broker

$1,000,000 to $100,000,000 or more

LIBOR plus 250 (fixed or floating)

Up to 60 months

Pros
  • Compare multiple loan options from CRE bridge loan lenders
  • High-leverage loans and mezzanine financing available
  • Low starting interest rates
Cons
  • Not a direct lender
  • High minimum loan amount
  • No online application

Why we picked it

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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.

How to qualify

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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.

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 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.

Uses for commercial bridge loans

Businesses can use a bridge loan for any short-term funding need while waiting for long-term financing or another source of revenue to become available. Each lender will also have its own restrictions regarding how borrowers can use the funds. Some common uses for commercial bridge loans include:

  • Buying real estate: Commercial bridge loans are often used to act swiftly on a commercial real estate deal. For example, an investor may want to buy a vacant multifamily building but may be unable to qualify for long-term financing until the building has tenants paying rent.
  • Renovating property: Businesses can use bridge financing to pay for renovations to a brick-and-mortar office, restaurant or retail store until long-term financing becomes available or revenue increases as a result of the renovated space.
  • Fix-and-flip project: Some real estate investors buy distressed residential homes in order to remodel and sell them for profit. A shorter-term loan makes sense for these projects because the investor can use the proceeds from the sale to pay off the loan.
  • Business expansion or acquisition: An opportunity to expand your business or acquire another business could produce future revenue — but you may need funding for the expansion or acquisition before the strategy pays off.
  • Paying for repairs: If your business is waiting on an insurance claim payout, a commercial bridge loan can help you pay for repairs to stay up-and-running in the meantime.
  • Working capital: Whether you’re looking to purchase bulk inventory, pay staff while you wait to receive overdue invoice payments, or cover operating expenses during your slow season, a bridge loan can help.

How to get a bridge loan

While the process of getting a commercial bridge loan varies by lender, these are the general steps you’ll need to take:

  1. Research lenders: The lenders on this page are a good place to start, but you also may want to look for other online lenders that offer bridge loans for your specific need or search for hard money lenders in your area’s local business network. Pay attention to eligibility requirements and compare your options based on the factors in the section below. You may need to call the lender to get all the details.
  2. Get pre-approval: If you’re using the bridge loan to purchase real estate, you’ll want to get a letter of intent or pre-approval to include with your offer.
  3. Submit required documents for underwriting: To formally apply for a bridge loan, you may need to provide additional documents that show your business finances and/or arrange for an appraisal or site tour.
  4. Review terms: Take the time to understand all of the terms and fees associated with your loan before signing.
  5. Close on your loan: The lender will guide you through the closing process, including filling out paperwork and paying any applicable upfront fees. Closing can take anywhere from one week to more than one month, depending on the loan type and the lender.

How to compare commercial bridge loans

As you research commercial bridge lenders to find the best option for your business, consider the following factors:

  • Eligibility requirements: Narrow down your options to loans you can qualify for based on your business credit score, business experience and down payment amount. Pay attention to the maximum LTC and LTV, which will impact your available capital after closing.
  • Rates and fees: Make sure to compare the interest rate along with any upfront fees, third-party closing costs and prepayment penalties.
  • Repayment terms: Consider your exit strategy and choose a lender that offers a repayment term and payment frequency you can manage.
  • Use restrictions: Make sure the lender allows the bridge loan to be used for your primary funding need.
  • Loan amounts: Look at the minimum and maximum loan amounts to make sure you can borrow enough to meet your needs.
  • Lender reputation: Consider the lender’s experience and look for customer reviews for the lender and loan servicer. Make sure the lender is licensed to lend in your state.
  • Closing timeline: If you need a fast business loan, that may help narrow down your options based on how quickly each lender can close.
  • Refinancing and extension options: Consider whether you want the option to refinance with the same lender or extend the loan if you need more time for repayment.
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Pros and cons of commercial bridge loans

ProsCons
 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

How we chose the best lenders

We reviewed more than two dozen lenders to determine the overall best seven commercial bridge loans. To make our list, lenders must meet the following criteria:

  • Loan-to-value: When selecting real estate lenders, only lenders that offer at least 70% of the property’s after-repair value made the cut.
  • Rates and terms: We prioritized lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we considered each lender’s reputation and business practices. We also favored lenders that have diverse, nationwide lending experience, offer reliable customer service and provide any unique perks to customers, like ongoing support after funding or refinancing opportunities.
  • Funding speed: We favored lenders that have a quick and easy application process and fast closing times, eliminating options with a minimum closing time greater than two weeks.
  • Eligibility: We prioritized lenders that were willing to work with new or young businesses and had flexible credit requirements, if disclosed.

Best commercial bridge loan summary

Frequently asked questions

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.