Business owners often find themselves in a difficult position when a new construction has just completed. Capital reserves have hit an all-time low (often, due to unforeseen costs and capital outlay during construction and/or renovation). As a result, bills tend to get paid a little later than usual – and when bank partners start running for the hills, stress can hit an all-time high.
This is where commercial bridge loans come in:
Interest rates on commercial bridge loans are slightly higher than commercial mortgage loans; however, terms are usually quite short (i.e. 12-36 months). This can give a business the opportunity it needs to stabilize the company in its new location and put itself in a stronger financial position.
When the time is right, permanent commercial mortgage financing can then be applied for. Benefits of a commercial bridge loan include:
- Up to 80% LTV
- Fast closing – often within 10 days
- Complex deal structures
- Cash-out for recapitalization
- Partner buyouts can be arranged
In closing, commercial bridge loans can be a powerful alternative lending solution when other options seem out of reach. They can also put your business back on track to success and traditional financing sources back within reach.
For more information on commercial mortgage or commercial bridge financing, please visit http://www.blsfinance.com or call us at 980-202-7990 Mon. – Fri. 9am – 5pm, EST.