What is a commercial bridging loan?
A commercial bridging loan in the UK is a type of short-term finance specifically designed for businesses or investors to 'bridge the gap' between financial need and the availability of long-term finance.
To better understand the essence of a commercial bridging loan, let's consider its main characteristics and features.
- Short-term financing. Payday loans are usually short-term, from a few weeks to 12-24 months.
- High interest rates: compared to other loans, bridging loans are characterized by high interest rates due to their short-term nature and bridging loans
- Secured loan: in most cases, such loans are secured by property or other assets.
- Fast approval process: compared to traditional loans, bridging loans are characterized by fast approval
- Flexible repayment terms. On an individual basis, the creditor may offer interest payment at the end of the loan, instead of monthly or other loyal terms.
Thus, short-term secured bridging loans have both disadvantages and advantages. Therefore, depending on the needs of the business, this type of financing can be considered. You can compare the conditions of pass-through business loans using our catalog.
Business loan calculations for 3 years (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 500,000 | 8.65% | 66,677 |
| 500,000 | 8.75% | 67,448 |
| 500,000 | 8.85% | 68,219 |
| 1,000,000 | 9.65% | 148,771 |
| 1,000,000 | 9.75% | 150,313 |
| 1,000,000 | 9.85% | 151,854 |
| 2,500,000 | 10.65% | 410,469 |
| 2,500,000 | 10.75% | 414,323 |
| 2,500,000 | 10.85% | 418,177 |
| 5,000,000 | 11.65% | 898,021 |
| 5,000,000 | 11.75% | 905,729 |
| 5,000,000 | 11.85% | 913,438 |
