Term Bridge Loans
Term Bridge Loans for Short-Term Business Financing
Learn About Our Bridge Loan Solutions
A term bridge loan is short-term business financing that is expected to be replaced by permanent financing — new debt or equity, a loan syndication or asset sales — before it matures. Term Bridge Loans are part of the Term Loans program at Commercial Finance Partners.
Bridge loans are generally used to help facilitate a need that will ultimately be satisfied by permanent funding. Whether it’s a real estate project or a bridge to a senior credit facility, bridge loans can often create liquidity needed to complete the transaction through expedited underwriting and funding.
We offer bridge loans tied to business needs.
Loan Amounts Start at $500,000 and with rates starting at 10%.
Bridge Loans are designed to either be refinanced with permanent financing or act as a bridge to an equity raise, liquidity event, or other end goals that cannot be met by traditional financing.
- Loan Amounts: Up to $10,000,000
- Terms: 3 months to 3 years
- Rates: 10-24%
- Funding Timeline: Typically, 2 to 4 weeks
- Both PG and non-PG options available
- Can be senior or subordinated debt
- Customized Amortization available
How Term Bridge Loans Work
Our term bridge loans are designed to either be refinanced with permanent financing or act as a bridge to an equity raise, liquidity event or other end goal that cannot be met by traditional financing. We offer bridge loans tied to business needs.
Typical Uses of Term Bridge Loans
- Bridging to a senior credit facility while it is put in place
- Providing short-term coverage during a transition or refinancing
- Bridging to an equity raise or another liquidity event
- Financing an acquisition while the long-term financing package is being arranged
- Keeping a project moving while permanent loans are pending, including real estate projects
Term Bridge Loans vs. Commercial Real Estate Bridge Loans
Both are short-term loans meant to be replaced by permanent financing or a sale; the difference is what they bridge. A commercial real estate bridge loan finances a property: it is usually written for up to three years so that a newly built or acquired property can lease up and stabilize before it is sold or refinanced. A term bridge loan bridges a business need, such as a senior credit facility, an equity raise or another liquidity event, and can be senior or subordinated debt.
For longer-term needs, compare our business term loans, including cash flow loans and situational capital term loans.
Term Bridge Loan FAQs
What is a term bridge loan?
A term bridge loan is short-term business financing that is expected to be replaced by permanent financing — new debt or equity, a loan syndication or asset sales — before it matures. At Commercial Finance Partners, term bridge loans are designed to be refinanced with permanent financing or to bridge to an equity raise, liquidity event or other end goal that traditional financing cannot meet.
How long does a term bridge loan last?
Our term bridge loans have terms of 3 months to 3 years. For comparison, bridge loans in bank leveraged lending generally mature in one year or less, and commercial real estate bridge loans are usually written for up to three years.
How much can a business borrow with a term bridge loan?
Loan amounts start at $500,000 and go up to $10,000,000, with rates of 10% to 24%. Both personal guarantee (PG) and non-PG options are available, and the loan can be senior or subordinated debt with customized amortization.
How fast can a term bridge loan fund?
Funding typically takes 2 to 4 weeks. Bridge loans can often create the liquidity needed to complete a transaction through expedited underwriting and funding. The loan is then repaid when the permanent financing, equity raise or liquidity event it bridges to is in place.
Why Work with Commercial Finance Partners?
- Leverage Existing Assets
- Increased Working Capital
- Creative Deal Structure
- Alternative to Equity
- Growth Focused
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