working capital management Working Capital Management | Page 9

COMMERCIAL
BRIDGE LOANS
Commercial bridge loans are a short term real estate
loans which provide short term financing to the property
owner for completion of some task. These tasks can be
improving the property, selling the property or finding a
new tenant. These loans are also called mortgage bridge
loans and they are known as short term commercial
business loans as well.
These are used for purchasing commercial properties
when there is no availability of permanent financing
option. As commercial bridge loans are have short term
prepayment period of 6 months to 3 years, they do not
have prepayment penalty. After being repaid, the property
is refinanced or sold with permanent financing.