What you need to Know about Commercial Bridge Loans

SAN ANTONIO - June 9, 2016 - PRLog -- Per Bruce Myles, owner and founder of Proactive Commercial Lending Group, LLC,"a Texas Commercial Lender,"The namesake is a pithy description for its use. When short term financing is needed for a real estate purchase, the borrower might have plans to sell it soon thereafter or, to refinance it. It's called a "bridge loan," precisely because that is the instruments sole function: to provide financing for a short time for a commercial property between the buy and the next step.

This next step is what's often referred to by lenders as an "exit strategy." In fact, that's one part of qualifying for a commercial bridge loan.

Here are some helpful things to know about commercial bridge loans:

● Short term capital help. In the typical scenario, a commercial bridge loan is to provide necessary capital for the purchase of a property. For instance, a business owns a stand-alone suite of offices, which is under contract to close. But, settlement day is three months out and the business wants to purchase a different stand-alone suite of offices and does not have the capital to buy it. A commercial bridge loan is the right financing to make the purchase of the other stand-alone suite of offices even though the one owned is not yet officially sold. This provides the money to finance the purchase until the under-contract property is closed and money distributed.

● Rates. Generally, commercial bridge loans are loaned at rates a percentage point or more higher than the going base rate. These types of loans are also generally interest only, because of their short term and since these serve as temporary financing.

● Payment. Since commercial bridge loans are generally interest only payments, the full loan balance becomes due at maturity. The timing is strategic, intended to match the sale or refinance of a commercial property to pay the balance of the bridge loan in-full.

● Term. As indicated, commercial bridge loans are short-term financing, which means in-general, the term is six months. Of course, not all commercial bridge loans are six months, some have different length terms.

Proactive Commercial Lending Group, LLC was formed back in 2003 by Bruce Myles with the thought that many good, hard working business owners were not getting the Banking Services they needed to survive,  maintain and grow their business. This was due to the restrictions on banks (FDIC) or banks not willing to take a chance on their own customers and communities (or Lazy Loan Officers)!!

For help getting Texas commercial loans, contact http://www.proactivelendinggroup.com