🌉 Bridge Loans

What is a Bridge Loan?

A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years, pending the arrangement of larger or longer-term financing. It is interim financing for a business until they obtain permanent financing or the next stage of funding.

Bridge loans are typically more expensive than conventional term financing, to compensate for the additional risk — but they are arranged quickly with relatively little documentation.

Common Uses

• Inject capital to carry a company between major private equity financings
• Help carry distressed companies while searching for an acquirer or larger investor
• Final debt financing before an IPO or acquisition
• Commercial real estate — quickly close on a property or retrieve from foreclosure
• Business continuity when a senior partner exits

Key Characteristics

• Typical terms: up to 12 months
• LTV ratios generally do not exceed 65% for commercial properties
• Fast approvals with minimal documentation
• Higher interest rates due to short-term risk

Real Estate Bridge Loans

Bridge loans are often used for commercial real estate to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity while securing long-term financing. They are typically paid back when the property is sold, refinanced, or permanent financing is secured.

Greater Globe Alliance and its network offer a wide range of short-term and bridging loan solutions with flexible terms to suit your business's situation and financing needs.

Will not affect your business or personal credit score