What The Heck Are Commercial Bridge Loans

Real Estate and Personal Finance are important aspects that have to work together.   Most people can not make any type of a real estate transaction without some sort of financing.   There are many different types of loans that are available for the consumer.   If a family wants to purchase a home, most lenders have loans that are available to cover the purchase of their home.   There are various other types of loans such as construction for people that are having their new home constructed.   A lending institution will issue a building loan while the building of the home is in process and then once it is completed will turn the loan into a regular home loan.

Commercial Loans

Commercial loans are designed to help people purchase commercial businesses or buildings that are zoned for commercial use.   Just like personal or home loans there are a variety of different options that a purchaser can apply for.   One is the commercial Bridge Loan which is normally a short term loan that will allow a person to purchase a commercial property or business.   This type of loan can be very beneficial if there is a business in foreclosure or if they have the opportunity to purchase a business at a good price but it must be completed quickly.   A Bridge Loan can sometimes only be for six months or a year until the purchaser can secure a more permanent loan for their commercial property or business.

Why Are Bridge Loans Good?

•   They use the Commercial Property as collateral

•   They can help you to get a quick loan to keep you from losing a great deal

•   Bridge Loans can also be obtained if a balloon payment is due and you need extra

cash to pay it off for you commercial business

•   They can also be used for renovations to your current business to help increase your

How Do They Help?

It also offers the opportunity that if you find a business in something like a foreclosure and the business is about to be closed and you need money fast so you can purchase the business at a great cost.   Apply for a Bridge loan, which is normally for a short term, until you can secure your long term financing.   This will keep you from missing out on the deadline and allows you to purchase the business before it is totally closed.   Be sure to check out all of your options when you are working with real estate and personal finance issues .