Commercial Bridge Loans
Commercial bridge loans, also known as a swing loan or gap loan, offers business owners and corporations a way to bridge the gap between a short-term loan and a permanent one. Most commonly used to pay off a mature note, a bridge loan allows borrowers a break until they finalize their existing obligations.
What is a Bridge Loan?
If you’re wondering “what’s a bridge loan”, here’s a simple bridge loan definition. A bridge loan is a short-term loan used until a permanent loan is secured.
With bridging finance, you are effectively closing the gap between two periods, ensuring you have the capital to continue business operations. These types of loans can be applied for commercial purposes and residential properties, as well.
L3 Funding expedites the filing and closing process through our bridge lending program, so you can work towards securing a permanent loan. Whether you’re seeking a real estate bridge loan or commercial, we can help you access funds while you manage your other expenditures.
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How Does a Bridge Loan Work?
A bridge loan can be found under a host of names, such as a gap loan, swing loan, and interim financing. As with its variety of names, they can be applied to several different situations. Most frequently they are used when a business or private individual is seeking funding that isn’t yet accessible.
Commercial bridge loans allow entrepreneurs and business owners many advantages between funding periods such as the ability to:
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Get a new business up and running
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Pay employees and contractors
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Make advancements on current or future products
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Reallocate stock ownership
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Provide a financial buffer during tumultuous financial times
This program is an excellent option for business owners who need short-term access to funds that banks may not be willing to make available. Larger entities such as investors or corporations often seek out these loans as a way to cover expenses during the interim while waiting for a larger funding pool.
Commercial bridge loans offer a grace period when the financial markets aren’t in your favor and you need an injection of funding. L3 Funding’s bridge loan solutions make it easy to find the cash you need, when you need it. Our funding options are flexible, allowing you to develop, buy, or renovate a commercial or residential property.
What are Commercial Real Estate Bridge Loans Used for?
Typically, individuals seek bridge lending to purchase a new home while waiting on their current home to sell on the market. For example, the homeowner uses the bridge loan to cover the down payment on the home they want to purchase. This gives them the opportunity to secure it as they wait for a buyer to purchase their current home.
A real estate bridge loan works best for homeowners that have already paid off their current mortgage. This way, they can avoid having to make dual payments until their home sells.
Types of Bridge Loans
There are several types of commercial bridge loan options. At L3 Funding, we can help you determine which is best for your new project.
Bridge Loans and Businesses: Corporations and businesses of all sizes seek commercial bridge loans when they need to cover the gap of interim expenses while waiting for a more permanent financing plan.
Developers turn to these types of loans when they need to continue their projects while waiting for equity financing to close. Small to mid-size enterprises can use a bridge loan to expand their talent pool or enhance their product line. Investors that are purchasing commercial properties can benefit from commercial bridge loans by using them to commence renovations while waiting for new tenants.
Do any of these circumstances apply to you? Then apply online to see if you qualify for a commercial bridge loan.
Bridge Loans and Private Real Estate: Bridge loans are also sought after when making private real estate transactions. If a homeowner has to cover a financial gap between the sale of their current property and the purchase of a new one, a bridge loan is a good option.
Bridge loans offered by traditional financial institutions are extremely difficult to come by. Usually, the borrower has to show a superb credit score as well as a low debt-to-income ratio before lending is provided.
Bridge Loans and Standard Loans: L3 Funding offers bridge loans that can be secured, approved, and processed faster than a traditional standard loan. These loans are designed to be used for short-term funding. This allows you faster access to the funds.
While they do carry higher interest rates than a traditional loan, you can expect to have the owed amount to be paid off relatively quickly. The faster the loan is paid, the less amount of interest accrued.
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"Our distributors were charging us premiums because we didn't have the money to pay for our inventory in advance. L3 arranged a merchant cash advance within days and we were able to capitalize on huge discounts available to much larger businesses. We've never looked back since and consider L3 a long tern partner."
Chad, Spokane, WA
$155,000
Total Funding Deposited
4 hours
Time to funding
"Our oven stopped working right before our busy tourist season and our bank denied our loan request. L3 Funding was able to get us the cash we needed in a couple of days and we were back in business in time to handle the rush of customers. L3 has been an awesome partner and they really provide peace of mind."
Alex, Myrtle Beach, SC
$75,000
Total Funding Deposited
24 hours
Time to funding
"We were rapidly scaling but our customers would take too long to pay our invoices. We had to choose between growth or stability. Our bank wouldn't even consider our special circumstances and denied our credit line outright. The financing with L3 Funding opened up our cash flow and helped us expand a lot faster than we ever could alone."
Justin, Austin, TX
$48,000
Total Funding Deposited
48 hours
Time to funding
Contact L3 Funding for Your Bridge Loan
At L3 Funding, we understand how critical funding can be for business owners and new home buyers. Therefore, we choose to focus our efforts on providing flexible and personalized solutions to our diverse customers.
We have made our commercial bridge loan and real estate bridge loan program available to a variety of clients. To see how L3 Funding's merchant funding solutions can help you, apply today!
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