Commercial Bridging Loans If you’re a company or entity looking for funds to acquire property, then a commercial bridging loan may be the best option for you.
Commercial Bridge Loans
Commercial bridging loans can help prospective commercial property buyers who need to fill a gap in financing. If you’re looking to add to your growing property portfolio or are just starting out, then you may require funding. As with personal loans, commercial bridge loans are designed only for temporary purposes – for 12 months or less. Given that there are many options available, we know that sometimes finding the perfect deal can be overwhelming. That’s why we provide a tailored service to help you achieve the best outcome for your circumstances.
It’s worth bearing in mind that for commercial bridge loans, the overall use for the property needs to be around 40% commercial. So, if you’re purchasing a retail unit with an apartment above it, the value of the retail unit usually needs to be more than the apartment. We can discuss this in more detail further into your application. We look at each case individually, accounting for your personal situation.
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Commercial Real Estate Loan
A commercial real estate loan is solely used for business purposes rather than residential properties. In many cases, financing is typically covered by a loan for every step of the process, from acquisition to construction. The main difference between commercial bridging finance and a bridging loan is that commercial loans are often made to entities as opposed to an individual. These entities are formed for the sole purpose of acquiring commercial bridging finance. This could be a group of individuals with a shared interest or business partners.
The loan may be used by the entity for funding a refurbishment project or perhaps to purchase a new property. Either way, because of the nature of the entity, there is often little to no track record of credit ratings. In this case, we would require documentation from the principal or owner of the entity. The nominated individual will be responsible for information given on behalf of the group.
Commercial Loan Rates
There isn’t one definitive rate when it comes to commercial bridging finance loan rates. This is because the rates for business loans are not predetermined as with personal bridging loans. Therefore, the loan rates are decided through careful consideration on an individualised basis. This can be beneficial in many cases, as the loan is personalised to you. As a guide, commercial loans often accrue higher interest than a residential loan, but this isn’t always the case. A great amount of information is required to ensure we have all the documentation we need to provide you with our best rates for you. We will be able to guide you at each step of the way, only asking for information relevant to your loan.
We understand that not having set commercial loan rates can be frustrating. That’s why we have a development finance calculator which can help you with any questions you may have regarding how much you can borrow. If you need further help or advice, then please contact a member of our team.
Banks That Offer Bridge Loans
Just like for residential property owners looking for funding, there are a growing list of banks that offer commercial bridging loans. However, many banks have now become studious when it comes to bridging loans as a result of previous over-lending. Therefore, it may be more difficult to acquire a bridging loan from your bank. That’s where we come in. Our team of experts will guide you through the process, finding you the best loan for your needs.
Still unsure as to whether a commercial bridging loan is the right choice for you? Check out our types of loan page for more information or request a free quote here.