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Having a great credit history, for both your business and your private life, and a solid relationship with a lender always helps when applying for a bridging loan. There have even been situations where bridge loans were approved with only a signature – no collateral necessary!
Even with good credit, however, expect to pay a slightly higher rate of interest for this type of short-term bridge loan. One-half of a percent or more is typical. The maximum length of a bridge loan is usually twenty-four months. The lender has to make some money on
deal and higher interest rate is where opportunity lies. Other factors are also involved in determining interest rate. The applicant’s calculated credit risk, value of items being used as collateral and amount of time loan is needed all factor into equation, too.
If you think applying for a bridge loan makes sense for your situation, work with a US Commercial Lending organization that specializes in this type of loan. They’ll help with all steps necessary and they’ll offer advice along way. Don’t be afraid to shop around for better rates and terms! The commercial lending market is very competitive and it’s to your advantage to do business with a lender that will work with you and not against you.
Commercial Lifeline are Commercial Mortgage and Bridging Finance specialists.
Download our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.
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