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Net Loan Required

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Interest Rate (per month)

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Lender Facility Fee (0.5%)

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Bridging loans are only intended as a short term finance option.

Their monthly rate of interest is high when compared to other methods of finance, so should not be used as a long term option. It is essential to have an exit strategy because at the end of the agreed term the bridging loan will need to be repaid.

Commercial Bridging Loans

What is a commercial bridging loan?

Commercial bridging loans are short-term loan facilities that are secured on either commercial property, development land or farmland. They are used by businesses or individuals who require a fast or short-term loan ranging from £100,000 to £100 million.

  • Immediate in principle decisions
  • Fast quotes and written terms
  • Loans from £100,000 to £1 billion

Commercial bridging loans can be used for

  • Purchasing property
  • Property developments
  • Renovation/restoration projects

What can a commercial bridging loan be secured on?

Table

Commercial bridging loan calculator

Our commercial bridging loan calculator is designed to provide full details of the costs involved in obtaining a commercial bridging loan. It will calculate and compare the full interest costs if the loan runs full term or is cleared early.

How to use our simple calculator

You only need to enter:

  1. the type of commercial property or properties that you would like to use as security
  2. loan amount
  3. loan term required
  4. number of security properties being used and their value.

Commercial bridging loan interest rates and costs

Bridging loans secured on commercial property are more specialist than those secured on residential property, meaning there are far fewer lenders in this market.

Fees and costs for commercial bridging finance

In addition to interest charges, there are other fees and costs involved when taking out a commercial bridging loan.

Commercial bridging loan lending criteria

We have an extensive panel of lenders which enables us to arrange bridging loans for a wide range of circumstances.

Commercial bridging loans can be arranged for:

  • Individuals
  • Sole traders
  • Partnerships

Loans are secured on commercial or semi-commercial property:

  • Shops
  • Offices
  • Restaurants

They can also be secured on land:

  • Development land with planning permission
  • Land without planning
  • Farmland

Loans can be used for most purposes, including:

  • Buying property
  • Cashflow
  • Pay debts

Evidence of income and affordability

The interest charges on a commercial bridging loan can be added to the loan facility and repaid when the loan is redeemed.

Credit history

Having debts or a poor credit history does not exclude applicants from obtaining a commercial bridging loan.

  • CCJs
  • Poor credit score
  • Defaults

What is important is the planned exit route. If the loan is to buy a property to restore or convert, then once finished it will be sold for a profit, then this will most likely be acceptable to a bridging lender, regardless of the applicant’s credit history. If the applicant has terrible credit and is planning to refinance once the property is finished, this will be of concern and the lender will require evidence that refinance is possible or that there are other possible exit options.