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Commercial Bridge Loans
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Bridge
A bridge loan provides temporary financing while some obstacle is overcome or rectified allowing long-term financing to be put in place. These types of loans are usually short-term and are excellent for purchasing turnaround properties. One of the main benefits of a bridge loan is that they can be closed very quickly as compared to long-term financing.
Benefit of Bridge Loans
- Closes fast
- Excellent for turnaround properties
- Provides short term financing until loan term financing can be achieved
At hotelloans.com we have extensive resources for bridge financing with lenders that specialize in this type of financing for hotels.
Bridge Loans for Commercial Properties
If you have found the hotel or motel you have been searching for and want to make it your next business investment, we can structure and place the financing to make that a reality. Business financing comes in many different forms and while most are long-term loans, we can also help you with a unique type of shorter-term financing: a bridge loan.
A bridge loan provides temporary financing while some obstacle is overcome or rectified allowing long-term financing to be put in place. These types of loans are usually short-term and are excellent for purchasing turnaround properties. One of the main benefits of a bridge loan is that they can be closed very quickly as compared to long-term financing.
Benefit of Bridge Loans
- Closes fast
- Excellent for turnaround properties
- Provides short term financing until loan term financing can be achieved
At hotelloans.com we have extensive resources for bridge financing with lenders that specialize in this type of financing for hotels.
What is a Bridge Loan For Commercial Properties?
Bridge loans, also called bridge financing, swing, or gap financing, are used to finance an immediate opportunity and work generally for all commercial real estate. Commercial bridge loans are used to “bridge the gap” so to speak, between a business’s need for financing right now and a more long-term solution. Most any type of commercial real estate can qualify for a bridge loan under the right circumstances.
Most often, bridge loans apply to commercial real estate, such as a hotel or a motel. Bridge loans are used to finance a real estate purchase and can also be used for renovations. In order to obtain a bridge loan for a particular property, the bridge loan lender will want to know what the permanent financing is going to look like once the property is stabilized.
Unique Characteristics of a Bridge Loan
- Commercial bridge loans are always short-term or interim financing. They last from a few months to a few years.
- Bridge loans are usually fast-to-fund.
- Bridge loans have higher interest rates than other types of loans.
- Collateral is used to secure these loans, usually it is the real estate you are purchasing or renovating.
- The value of the collateral you are offering plays a significant role in whether or not you qualify for the bridge loan.
- Most bridge loans are issued by lenders that specialize in bridge financing.
When it comes to obtaining a bridge loan for a hotel or motel, you want an expert who knows all the ins and outs of financing for hospitality properties. The experienced team at Hotelloans.com has a deep understanding of hotel lending and only work with lenders that specialize in hotel loans.
How Does Bridge Loan Financing Work?
A bridge loan is based on your specific needs and with the lender you are working with. If and when you are presented with an urgent real estate opportunity, we are here to help with a bridge loan.
A commercial bridge loan will provide you with funding so you can take advantage of the opportunity immediately. Once you have the bridge loan, then you can look around for a more affordable, longer-term form of financing, or for a refinance.
You will be required to put up your real estate property or investment as collateral and the terms that are offered are always short-term. The lender sets the loan amount, and that amount is always based on the property you are acquiring. Properties are always evaluated in terms of the loan-to-value (LTV) or after-repair value ratio (ARV). Bridge leverage today typically runs around 65%, reaching 70% where collateral value, cash flow, and guarantor strength support it — 75% was common before 2020, and lenders have become more conservative since. This is what lenders like to see rather than a fixed rule, and every transaction is different. The borrower will be responsible for the remainder of the money needed to acquire the property. This is called the capital injection.
Bridge financing is priced above conventional bank debt to reflect its shorter term and transitional risk. Actual pricing depends on the property, the sponsor, and market conditions at the time of approval.
Other fees are often associated with bridge financing such as origination points and closing fees. Borrowers will also be required to pay for the appraisal needed to understand the value of the property being purchased.
What You Should Look for in a Bridge Loan
If you think bridge loan financing might be right for your needs, there are a few things to look for. There are the typical loan qualities such as terms, loan amounts, interest rates and more. With interim financing, there are two characteristics you should pay attention to.
- Funding Time: A bridge loan needs to fund quickly. That is the nature of a bridge loan. This is why it is important to speak with financing experts like HotelLoans.com who work with hotel loans every day.
- Prepayment Incentives: Any type of bridge loan should offer some kind of prepayment incentive. The loan is short-term, after all, and you want to pay it off early.
We have extensive lender relationships across the bridge market. Hotel financing is all we do, which is why we are in the right place to help you get your project financed. Contact us today to learn more about bridge loans.
Last reviewed: August 2026