What is commercial bridging?

A commercial bridging loan is short term finance secured on commercial or semi-commercial property. It is commonly used to complete a purchase to a tight deadline, fund refurbishment before refinancing, buy at auction, or release cash from property ahead of a sale or longer term finance.

How it works

Underwriting is led by the property and the exit strategy rather than lengthy affordability checks, which is why bridging can complete far faster than a conventional commercial mortgage. Interest is often rolled up so that nothing is payable until the loan is redeemed.

The exit

Lenders will want to see a realistic exit from day one, usually a sale of the property or a refinance onto a commercial mortgage once works are complete or the position has stabilised.

Expert advice

SM Finance’s specialist team will take the time to understand your plans and approach the lenders best placed to support them, from high street banks to specialist funders. Call us on 020 4511 9511 to discuss your requirements.

Commercial bridging loans are generally not regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on a loan secured on it.