Commercial Bridge Loans That Keep Deals Moving

Fast, flexible, and interest-only financing for commercial property investors and business owners.

What Is a Commercial Bridge Loan?

A commercial bridge loan is short-term financing designed to “bridge the gap” until long-term or permanent financing is in place. Instead of waiting 60–90 days for a bank loan, investors use bridge loans to move quickly on acquisitions, refinances, or value-add opportunities.

These loans are typically interest-only, secured by the property, and structured to provide breathing room for a project that needs time to stabilize or reposition. With terms ranging from 6 to 36 months, commercial bridge loans are the go-to tool when speed and flexibility matter most.

At Nelson Funding, we connect borrowers to private lenders, institutional partners, and alternative capital sources that move faster than banks and structure deals creatively to fit the situation.

When to Use a Commercial Bridge Loan

Not every project can wait for traditional financing. Common scenarios where commercial bridge loans make sense include:

Acquisitions Under Tight Deadlines
Competitive deals often require proof of funds and quick closings. A bridge loan allows investors to buy the property before arranging permanent financing.
Refinancing or Paying Off Maturing Debt
When an existing loan is due and time is short, a bridge loan buys breathing room until a long-term solution is secured..
Renovation and Repositioning Projects
Value-add investors use bridge loans to fund capital improvements, stabilize income, and refinance into permanent loans once NOI increases.
Properties That Don’t Yet Qualify for Permanent Financing
If occupancy or financial performance doesn’t meet bank requirements, a bridge loan provides the time needed to reach those benchmarks.
Seizing Market Opportunities
In hot markets, moving slowly means losing out. A bridge loan ensures you can act first and finance later.

Loan Highlights

Every deal is unique, but here are common features of Nelson Funding’s commercial bridge loans:

Loan Sizes: $1M to $50M+
Closing Speed: As fast as 7–14 days
Terms: 6–36 months, often interest-only
Property Types: Multifamily, office, retail, industrial, hospitality, mixed-use
Flexible Structures: Non-recourse options, tailored covenants, creative underwriting
Nationwide Coverage: Deals funded across the U.S.

How Commercial Bridge Loans Compare to Other Financing

vs. Bank Loans

Banks typically take months to approve, require extensive documentation, and often reject transitional or value-add projects. Bridge loans, in contrast, prioritize property value and exit strategy, not just strict underwriting boxes.

vs. Hard Money Loans

While both can close quickly, commercial bridge loans often come from institutional or private lenders with more competitive rates and larger deal sizes than traditional hard money loans.

vs. Permanent Financing

Permanent financing is best for stabilized, income-producing properties. Commercial bridge loans serve as the stepping stone to get there.

Example Scenario (Case Study Style)

Investor Profile

A commercial real estate investor in Dallas, TX

Project

Acquisition of a 120,000 SF industrial warehouse with significant deferred maintenance

Challenge

The seller required a 21-day close. The property’s occupancy was only 65%, making it ineligible for traditional bank financing.

Solution

Nelson Funding sourced a $12M commercial bridge loan with a 24-month term, interest-only payments, and renovation reserves built into the loan. This allowed the investor to close on time, complete property upgrades, and increase occupancy to 90%. Within 18 months, the borrower refinanced into permanent financing at a lower fixed rate.

This is exactly where Nelson Funding shines — fast, creative solutions that give investors room to execute their strategy.

Why Work With Nelson Funding

Commercial bridge loans are only as strong as the partner behind them. Nelson Funding brings:

Speed: Closings in 7–14 days
Flexibility: access to private lenders, institutions, and alternative capital
Expertise: hundreds of millions in closed transactions across property types
Transparency: clear expectations and straightforward communication
Track Record: proven results for developers, investors, and business owners

“Where banks say no, we figure out how to get the deal funded.”

FAQs Bridge Loans

What’s the typical interest rate for a commercial bridge loan?

Rates vary by property type, risk profile, and lender, but most fall between 8% and 12%.

What property types qualify?

Multifamily, office, retail, industrial, hospitality, mixed-use, and land are all eligible.

Do I need excellent credit?

No. Bridge loans are primarily asset-based, with emphasis on property value and exit strategy.

What are typical terms?

Loan terms range from 6–36 months, usually interest-only.

What’s the exit strategy?

Most borrowers refinance into permanent financing, sell the property, or reposition before paying off the bridge loan.

Ready to Move Forward With Bridge Financing?

Don’t let timing or bank restrictions stop your project. Nelson Funding connects borrowers with fast, flexible bridge financing designed to close deals quickly and set you up for long-term success.