Commercial Bridging Loans: Fast Finance for Property Investments

•  Introduction
  
• What Is a Commercial Bridging Loan?
• When Commercial Bridging Is Used
• How Fast Can Funding Happen?
• Commercial Property Types Suitable for Bridging
• Exit Strategies That Work
• Typical Costs and Loan Structure
• What Lenders Look At (Without the Jargon)
• Direct vs Broker Route
• Frequently Asked Questions
• How We Approach Commercial Bridging at BiG
• Conclusion

Commercial property deals often move quickly, and long-term funding is not always ready when an opportunity appears. That is where a commercial bridging loan becomes useful. It gives property investors and brokers fast, short-term finance to secure or refinance a commercial asset while the longer plan is put in place.

Whether the goal is to complete an auction purchase, access capital tied up in an existing property, fund light works or exit a development, commercial bridging loans provide the flexibility and speed the market often demands. In this article, we explain how they work, when to use them, and what investors and brokers should have in place to move quickly when the right deal appears.

A commercial bridging loan is short-term finance secured against a commercial or semi-commercial property. It is typically used to buy or refinance an asset quickly, with repayment coming from a sale or refinance at the end of the term. Terms usually range from a few months up to around two years, depending on the exit strategy.

This type of loan is designed to bridge a timing gap rather than replace long-term borrowing. The emphasis is on the strength of the security, the exit plan and the timescale. Unlike traditional mortgages, the focus is not on income stress testing but on the asset, borrower experience and viability of the exit. For investors and brokers, it is a practical tool that removes delay and lets deals move forward when conventional funding would not work on the same timeline.

At BiG Property Finance, we lend our own funds, so we can move quickly on commercial cases where the exit is clear and the valuation supports the loan.

Investors and brokers turn to commercial bridging finance in several common situations:

Auction or deadline purchases

Auction contracts often require completion within 28 days. Bridging allows buyers to exchange with confidence and complete on time without waiting for a long-term facility.

Refinancing delays

If a refinance is slowed by valuation, title points or lender process, a bridging loan can release funds and prevent a purchase or project from stalling.

Releasing capital for the next deal

Bridging allows investors to pull out equity from an existing commercial property and use it to secure their next site before selling or refinancing the first.

Light refurbishment or conversion

If a property is not yet mortgageable, bridging can fund works so it meets the standard required for a term loan or sale.

Development exit

Completed schemes sometimes need more time to sell units or arrange long-term finance. A development exit bridge gives breathing space and avoids forced sales.

Mixed-use or semi-commercial properties

These assets often fall outside standard mortgage criteria, so bridging can be the fastest way to secure them while a longer facility is lined up.

In all these cases, speed, timing and flexibility matter more than long-term rates. The short-term nature of bridging means interest and fees are accepted as part of enabling the deal.

The speed depends on preparation and clarity, but commercial bridging is typically much faster than traditional finance. Decisions can be made in hours with funds released in days or a few weeks if the valuation is agreed, legal work is straightforward and the exit is defined.

At BiG, we review enquiries the same day and structure the legal and valuation steps around the timeline. We also use desktop valuations where appropriate, which removes weeks from the process. When customers or brokers come to us with a defined exit and the right information ready from the start, completion is far quicker and far less stressful.

The scope of commercial bridging is wide. Some of the most common property types include:

• Retail units and high street shops
• Offices and serviced buildings
• Industrial and warehouse sites
• Mixed-use or semi-commercial properties with residential upstairs
• Land with planning permission
• Vacant commercial property awaiting refurbishment
• Investment properties held in a company structure

Traditional lenders can be cautious with certain asset types, especially where leases are short, tenants are changing or works are planned. Bridging gives investors and brokers a tool to acquire or refinance these assets first, then exit into a long-term product or sale once conditions align.

Every bridging loan needs a clear exit. The most common routes are:

Refinance

Once a property is stabilised, re-let, refurbished or made mortgageable, a term facility can replace the bridging loan. This is popular with investors looking to hold and generate income.

Sale

It is common practice for an investor to purchase an undervalued property in need of work and make all the necessary alterations and improvements before then selling it at a profit to repay the bridging loan.

Development exit

For completed or nearly completed developments, bridging can provide the buffer to sell units or arrange senior debt without pressure.

The stronger and more realistic the exit, the faster the lender can proceed. Brokers also use the exit to align loan terms and interest structures with investor plans.

Commercial bridging loans are priced to reflect speed and short-term use. While exact numbers vary by case, most loans include:

• Interest charged monthly (either retained or serviced)
• Arrangement fee, often around 1 to 2 percent of the loan
• Legal costs
• Valuation fees
• Possible admin fees depending on lender and structure

At BiG, we do not routinely add exit fees, and our rates are fixed with clear terms provided at the start. Because we lend our own capital, we apply a practical view of risk rather than a one-size fits all approach. Lower LTVs and clean exits usually lead to faster terms and more flexibility.

Investors and brokers want speed and clarity, so understanding what matters to a commercial bridging lender helps cases move faster. Here are the main elements:

Loan to value (LTV)

The lower the LTV, the simpler the process. Standard ranges for commercial assets are often up to 65–70 percent, depending on the property and exit.

Valuation route

Desktop and drive-by valuations can speed things up where the asset and LTV justify it. Full RICS valuations are common where the case is more complex.

Borrower experience

Commercial loans favour experienced investors and developers, especially where works or complex exits are involved.

Security and title

Clean title, straightforward leases and no legal defects reduce friction.

Exit evidence

A refinance in principle, planned sale, agreed terms, or track record gives confidence and reduces underwriting time.

Company structure

Most commercial bridging is done through limited companies or SPVs, so having documents ready helps avoid delay.

Clarity in these areas reduces back and forth, which is why experienced brokers and direct clients with repeat history get the fastest completions.

Commercial bridging works well both ways, but the route affects the structure. Brokers play a major role in shaping the deal, presenting the exit and packaging documents for a smooth process. They can match the case to the right lender based on asset type, experience and timing.

That said, direct clients who understand bridging and have worked with a lender before can move equally fast when the relationship is established. At BiG, many commercial deals come through returning clients or brokers who know how we work and what to provide early on.

The key difference is preparation. A well-briefed broker or a direct client with a clear exit can help the lender deliver terms and funds quickly. The wrong route is the one where information is drip-fed or expectations about timescales are unclear.

1. What is the typical term for a commercial bridging loan?
Most commercial bridging loans run from 6 to 18 months. The actual term depends on your exit strategy and how long you need the funds.

2. Can I use a commercial bridging loan to buy mixed-use property?
Yes. Bridging loans can be used on commercial, semi-commercial and mixed-use properties, as long as the valuation and exit plan make sense.

3. How quickly can I get funds for a commercial purchase?
It’s possible to complete in as little as 7 to 10 working days. At BiG, we’ve moved even faster for repeat clients where the legals and valuation are already lined up.

4. What do I need to qualify for a commercial bridging loan?
The key factors are the property value, the loan-to-value (LTV), and a clear plan for how you’ll repay the loan (your exit). Lenders will also look at your experience and how the property is being used.

5. What’s the difference between commercial bridging and development finance?
Bridging is for short-term purchases or situations where the asset already exists. Development finance is for building or major works. If you’re doing light refurb or buying a tenanted unit, bridging is usually the right route.

6. Do I need to go through a broker?
Not necessarily. At BiG, we work with both brokers and direct clients. If you’re unsure where to start, we’re happy to walk you through it either way.

7. Can I refinance an existing commercial bridge with another one?
Yes, if you have a solid reason, like delays in planning or refinancing. Just be mindful of costs and make sure the second bridge brings you closer to your goal.

At BiG Property Finance, we lend our own funds, so we make decisions quickly on commercial assets across England and Wales. We focus on the value of the security and the strength of the exit, not box-ticking for the sake of it.

We regularly fund commercial purchases, refinances, development exits and equity releases where timing is tight or traditional lenders are slow. Desktop valuations are used where appropriate to save time, and we give clear terms upfront without exit fees or unnecessary conditions.

Brokers and experienced investors work with us because we respond quickly, structure deals around realistic timelines and guide you on what to provide so the loan completes without friction.

Commercial bridging loans give property investors and brokers a fast, flexible way to secure, refinance or release funds against commercial assets. When deadlines are fixed, exit strategies are clear and traditional lenders are too slow, bridging allows deals to progress without losing momentum.

The most successful outcomes come when the exit is defined, documents are ready and the lender understands the asset. That is where speed and certainty come from.

If you have a commercial property deal that needs fast finance, speak to us. Share the property details, timescale and your plans for exit, and we will come back the same day with practical next steps.