A bridge loan might be the right option if you need to finance a commercial real estate purchase or refinance an existing commercial real estate property.
How does a bridge loan work?
Bridge loans are short-term loans tied to the collateral offered by the loan recipient, often property or another business asset with determinable value. The loan amount will be a percent (%) of the asset’s value.
Most bridge loans offer a 6-24-month period before recipients must repay the loan. This makes them useful during periods of transition.
When should I pursue a bridge loan?
Bridge loans aren’t suitable for every business. They may be the right fit if you:
- Need to refinance an existing commercial real estate property with an expedited loan process
- Need a loan that can be approved and issued quickly – 10-20 business days if you’re working with Korea Capital
- Feel comfortable with relatively high-interest rates compared to other loans
- Have a clear exit strategy identifying a path to refinance the loan at the end of the 6-24-month term
If you’re interested in requesting a short-term bridge loan or want to discuss your options with one of our financial experts, contact us today.