Commercial & Semi-Commercial Bridging Loans
Commercial and semi-commercial bridging loans are types of bridging loans that are used for commercial property transactions. Commercial property is any property used for business, such as office buildings, warehouses, or retail units. Semi-commercial property refers to properties used for both residential and commercial purposes, such as a property with a shop on the ground floor and residential units above.
Commercial and semi-commercial bridging loans are typically used to bridge the gap between purchasing or refinancing a commercial property and the longer-term financing solution. These loans can be used to fund property acquisitions, refurbishments, or development projects and are secured against the property being used as collateral.
The loan amount for a commercial or semi-commercial bridging loan can vary depending on the lender and the borrower’s financial situation but typically ranges from tens of thousands to several million pounds. These loans may require a more thorough underwriting process than residential bridging loans, as lenders need to assess the potential profitability of the property and the borrower’s ability to repay the loan.
Commercial and semi-commercial bridging loans typically carry higher interest rates than traditional mortgages due to their short-term nature and higher risk. However, they can be a valuable tool for commercial property investors and developers who need to complete a transaction quickly or who need funds to cover a property development project. It’s essential for borrowers to carefully consider the costs and risks associated with commercial and semi-commercial bridging loans and to work with a reputable lender or broker who can provide clear and transparent information about the loan terms and conditions.
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.