Commercial Bridging Loans

A commercial bridging loan is short-term finance secured against a business or investment property. It provides fast access to funds, typically for 3–18 months, and is usually repaid when the borrower refinances with a longer-term mortgage, sells the property, or releases other capital.

They’re most useful when timing is critical — for example, buying at auction, securing a property quickly, funding a refurbishment, or bridging a cash-flow gap until longer-term finance is arranged.

Specialist lenders can release funds in as little as 48 hours once terms are agreed and the required checks are complete. Using an experienced broker helps speed up the process and ensures your application is directed to the right lender.

Commercial bridging loans are typically secured against offices, shops, warehouses, mixed-use properties, land with planning, or semi-commercial premises. Some lenders will also consider investment residential portfolios if the purpose is business-related.

Loan sizes usually start from £50,000 and can run into the millions. The maximum loan is based on property value, loan-to-value (LTV), and exit strategy. Typical LTVs are up to 70% of the property’s open-market value.

Expect to pay an arrangement fee (usually 1–2% of the loan), monthly interest (often rolled up and repaid at the end), plus valuation, legal, and broker fees. Transparency is key; a good broker will provide a clear breakdown upfront.

An exit strategy is your plan for repaying the loan – most commonly refinancing onto a commercial mortgage, selling the property, or using business cash flow. Lenders assess your exit strategy carefully before approving finance.

Yes, some lenders are flexible if the security and exit strategy are strong. Adverse credit may affect the interest rate offered, but specialist lenders often work with borrowers who don’t fit mainstream bank criteria.

Bridging loans secured solely on commercial or investment property do not fall under consumer credit regulation. However, reputable brokers and lenders still follow best-practice standards to ensure transparency and fair treatment.

Although it’s possible to approach lenders directly, a specialist broker can access the whole market, negotiate terms, and speed up the process. This often saves time and money, especially when complex structures or multiple lenders are involved.