What Is a Commercial Bridge Loan?
ACTION FUNDING INC. offers commercial bridge loans and commercial hard money loans based on the property as opposed to relying on debt service coverage ratios, borrowers credit and financials. ACTION FUNDING INC offers loans in 1st, and 2nd position.
How is Commercial Bridge Loan different from Bank Loan?
Banks typically have many layers of red tape before they consider offering and funding a Commercial Loan. These roadblocks can be items such as:
Minimum Credit Scores
Minimum Debt Service Coverage Ratios
Appraisals
Phase 1 and Phase 2 inspections
When is a Commercial Hard Money loan appropriate?
You need a loan quickly and can’t wait the 3 to 6 months for a traditional bank loan
You need a “bridge Loan” / short term loan to help “bridge” the gap between transactions
You do not qualify for traditional financing for whatever reason (income, tax returns, unique property, etc..)
You are a small business owner that shows a number of expenses to try to minimize taxable revenue.
Transaction not plain vanilla and therefore falls out of traditional lending parameters (see recent article: where to go when bank says no)
Your credit is impaired
Although you have ample equity, You or your property has liens, judgments, unpaid bills, etc. that cash is needed to resolve
You have ample equity in your property and need cash
You need business working capital
Your property is occupied by your business, and your financials don’t tell the full story.
You are trying to avoid foreclosure or a default and restructure your debt or reposition the property.
You are a foreign national and have no green card.
You need a complex loan with multiple pieces of cross collateral.