Bridge Loan

Category: finance

A short-term financing option used to secure immediate funding until a permanent financial solution is finalized.

Bridge loans are high-interest, short-term facilities (typically 6 to 36 months). They are heavily used in commercial real estate to rapidly acquire a property or fund a structural renovation project before securing a traditional, low-interest commercial mortgage.

Common Examples

• We deployed a commercial bridge loan to close on the acquisition inside the 15-day window while our SBA file was processing.
• The exit strategy for a bridge loan is almost always refinancing into a permanent, lower-cost institutional debt facility.