A Guide To Commercial Bridge Loans

A Guide To Commercial Bridge Loans

Commercial bridge loans are a sought-after real estate financing solution. If your organization is looking into buying commercial property, chances are, the organization will require some kind of financing. Bridge loans are a unique type of short-term loan that function very differently to regular business and personal loans.

What are bridge loans?

Bridge loans are short-term loans. Its main focus is to bridge the gap between a company’s funds and traditional loans with the price of the property. Generally, traditional banks don’t provide the entire amount required by companies and so they require additional financing. Bridge financing provides that additional cash injection when required, immediately. Bridge loans are usually refinanced as well.

Their interest rate is higher than other loans and it’s an asset-backed loan. The collateral is usually in the form of inventory or real estate. Luckily, with private lenders like Global Capital Partners Fund, access to funds is a quick as the loan application process is relatively straight forward.

If the borrower is taking out a bridge loan to finance the purchase of property, the property in question can become collateral for the loan.

An executive working on a bridge loan application.

Pros of bridge loans

Ensures you don’t miss out on lucrative opportunities

Lucrative business opportunities are usually time sensitive, particularly when it comes to buying commercial real estate. Bridge financing ensures you don’t miss out on such opportunities due to a cash gap. Private lending companies are quick to provide the necessary funds to ensure your organization can close on the deal.

Bridge loans are approved quickly

Traditional loans from banks can take months before they reach any verdict. Traditional bank loans aren’t ideal when you don’t have much time to make an offer on a property. Bridge loans are approved quicker as the documentation is simple and is backed by the property being invested in. Should the company default on payments, the lender can take possession of the property.

Global Capital Partners Fund is a leading private lending company based in New York City. Their agents can help your organization with real estate acquisitions with bridge financing.

Their bridge financing has helped with the acquisition of retail shopping centers, multi-family commercial properties, and even hotels. Their comprehensive financing solutions in Vancouver consist of mortgage lending, and asset based lending, and hard money loans. The company has over 30 years of experience in the industry and has worked with businesses across various industries too. Get in touch with their agents and begin your loan application today.

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