Commercial bridging finance is short-term lending secured against commercial property — used to buy, refinance or refurbish an asset while a longer-term plan completes. Propertyze arranges commercial bridging across 135+ lenders, structuring each facility around the asset and the exit.
Commercial bridging at a glance
- Loan size: typically from £25,000 up to £50 million and beyond.
- Leverage: most lenders advance around 70% to 75% of the property value; some go a little further where the deal is well structured.
- Speed: funds can be released in as little as five to ten working days, with four to five weeks the more typical timetable at standard pricing.
- Security: almost any non-residential asset — warehouses, shops, offices, care homes and more.
- Underwriting: many lenders weigh the asset and the exit more heavily than the borrower’s credit file.
How commercial bridging finance works
A commercial bridging loan raises capital quickly — typically to fund the purchase or refinance of a commercial asset, and often refurbishment as well. It bridges the gap between where you are now and what you want to achieve: you might refurbish a property to lift its value and rental income, reposition it for a new use, or prepare it for sale. The bridge funds that work in the meantime, and is repaid through a defined exit — usually a sale or a refinance onto term lending.
Who commercial bridging is for
We arrange commercial bridging for property investors, business owners, developers and landlords. The common thread is a commercial building — a warehouse, shop, office or care home, anything that is not residential — and a plan that needs funding faster than term finance allows.
If you already own the asset, bridging can fund refurbishment, refitting, a change of use or a planning application. It suits commercial flips — buy, renovate, sell — and it can also release equity from a property you hold to provide capital for your business.
What commercial bridging costs
The figures to plan for:
- Arrangement fee: typically 2%, paid to the lender and built into the loan facility — it does not come out of your own cash flow.
- Valuation fees: paid directly to the valuer, and potentially a couple of thousand pounds depending on the size of the asset.
- Legal costs: you cover both your own and the lender’s. A standard transaction runs to around £1,000 each; a very large property, or one with multiple units and leases, costs more.
Monthly interest moves with your credit record, the exit, how much you are borrowing and the strength of the asset itself. As a guide, the strongest commercial bridging cases are typically priced from around 0.7% per month; rates move with the market, so treat this as indicative. At the other end — a niche commercial property in an area that is hard to sell, with poor credit behind it — pricing of 1.2% to 1.3% a month is possible, though we rarely see cases priced that high.
The application process
The work starts before any application is made. We assess the asset and the borrower together — the strengths and weaknesses of the case, the full shape of the deal and the exit strategy. Presenting that correctly to a lender materially improves the efficiency of the underwriting, the ease with which the case goes through, and the experience for the client.
The starting documents are straightforward: an application form, a passport for identification, proof of address, details of the property, your credit report and the detail of your exit strategy.
Frequently asked questions
How much can I borrow?
Commercial bridging lenders typically offer from £25,000 up to £50 million plus, and most cases fall comfortably within that range. Most lenders go to around 70% to 75% of the property value, with a little more available from some lenders depending on how the deal is structured. Expect leverage to tighten where the deal carries more risk — poor credit, a property in an area deemed hard to sell, a sale as the exit, or an unusual asset.
How quickly can a commercial bridging loan complete?
Funds can be released in as little as five to ten working days, with the timetable driven by how quickly the valuation, legals and other paperwork can be turned around. Speed has a price: a lender completing in five to ten working days will charge more on the rate. Allow four to five weeks — the more typical timetable — and you can expect normal pricing.
Can I get commercial bridging finance with bad credit?
Yes. Many commercial bridging lenders are more focused on the asset and the exit of the loan facility than on your credit history. Credit does play a part where the exit is a refinance: a term lender may offer less, or price higher, to a borrower with adverse credit, which can leave the bridging lender with concerns over how it will be repaid. The answer is to understand the credit position and the exit at the outset — in most cases the effect is a slightly higher rate, nothing more.
Do I need an exit strategy?
Yes — and while a lender may accept “sale” or “refinance” without much detail, we do not. If sale is the exit, we seek confirmation from valuers of the likely sale value. If you intend to retain the property and refinance to repay the bridge, we establish what term lenders will offer and at what rate. Where possible we secure credit terms in advance, so you know with certainty that the bridging loan can be repaid.
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Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Most bridging loans on investment property are not regulated by the Financial Conduct Authority.
To put numbers to your own scenario, use our bridging loan calculator — it estimates interest, fees, net advance and LTV.
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