Fast Commercial Bridge Loans

Written by James McNee
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Many entrepreneurs turn to fast commercial bridge loans when trying to close quickly on a deal. Most often, bridge loans are used for commercial real estate purchases or refinancing. Other uses for this type of loan would be buying out a partner or purchasing an asset quickly to take advantage of a bargain price. Speed is the main factor in this type of loan.

Explanation of Fast Commercial Bridge Loans

A bridge loan helps to "bridge" the time gap between selling one property and using those funds to purchase another property. It is sometimes called a swing loan. These are short-term loans with length of term ranging from a few days to five years. The amount of the loan is based upon the amount of equity in the property being sold.

Fast commercial bridge loans are available that close in ten days or less. The loans are more expensive than standard mortgage loans. They are a great source of quick income when money is needed to prevent penalties or other problems. Lenders are willing to speed up the paperwork process. However, they do pay close attention to the value of the property being sold. They usually require a recent appraisal and photos of the property and the borrower will be scrutinized for credit reliability. In general, bridge loan lenders will be more flexible than standard loan providers.

Expert advice should be obtained when considering fast commercial bridge loans. Using a direct lender may save money over financing through a broker. The need for immediate funding should be carefully evaluated to assure that higher rates and fees are justified. Most borrowers find bridge loan lenders to be knowledgeable, flexible, and reasonable to work with.

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