Commercial Bridging Loans

Commercial Bridging Loan 

Short-term finance to purchase, refinance, or develop commercial property

Edited November 2025

What Is a Commercial Bridging Loan?

There are various forms of bridging loan, including residential bridging loans, refurbishment bridge loans, and commercial bridging loans.

A commercial bridging loan provides short-term funding for a commercial purpose. There’s typically no maximum borrowing limit, although most lenders cap the term at 12 months.

They are commonly used to purchase or refinance commercial properties, such as office buildings, retail units, or mixed-use developments. A bridging loan is classed as “commercial” when more than 40% of the property’s total floor space is used for commercial activity, for example, an apartment block with ground-floor retail units.

What Does Bridging Financing Fund?

Bridging finance is one of the most versatile funding tools available. While it often supports property purchases and renovations, it can also be used for a wide range of purposes:

• Purchasing or expanding a business
• Keeping a company trading while waiting for longer-term finance
• Funding property development or heavy refurbishment projects
• Stocking up on inventory or freeing up working capital

A bridging loan is especially useful when speed is critical. Many clients use one to secure a property quickly, then refinance onto a commercial mortgage or longer-term loan once stability is achieved.

Real-Life Example: Converting a Vacant Office Block in Manchester

A recent client approached GPS Financial to secure funding for the purchase and conversion of a vacant three-storey office building in Manchester city centre.

The building had been empty for several years and was deemed unmortgageable in its current condition due to structural issues and the need for a full change-of-use application.

Through a commercial bridging loan, the client was able to:

• Secure 70% of the purchase price plus additional funding for refurbishment works
• Complete the purchase within 14 days to avoid losing the deal
• Undertake a full conversion into modern serviced office suites, increasing the property’s value by over £400,000

Once the project was complete and fully let, the client refinanced the property with a long-term commercial mortgage, releasing equity and retaining a healthy monthly rental yield.

This case highlights how bridging finance can unlock opportunities that traditional lenders would not fund, enabling investors to act quickly and add value through strategic redevelopment.

Why Choose Bridging Finance?

The main advantage of bridging finance is speed. When timing matters, it can provide funding in a matter of days, allowing you to act quickly on opportunities such as purchasing new commercial premises before a competitor does.

It’s also highly flexible, with options to roll up interest, secure against multiple properties, and tailor repayment terms to fit your exit strategy.

Arranging a full commercial mortgage can take months; a commercial bridging loan lets you complete first and finalise your long-term finance later.

Through a commercial bridging loan, the client was able to:

• Secure 70% of the purchase price plus additional funding for refurbishment works
• Complete the purchase within 14 days to avoid losing the deal
• Undertake a full conversion into modern serviced office suites, increasing the property’s value by over £400,000

Once the project was complete and fully let, the client refinanced the property with a long-term commercial mortgage, releasing equity and retaining a healthy monthly rental yield.

This case highlights how bridging finance can unlock opportunities that traditional lenders would not fund, enabling investors to act quickly and add value through strategic redevelopment.

Why Choose Bridging Finance?

The main advantage of bridging finance is speed. When timing matters, it can provide funding in a matter of days, allowing you to act quickly on opportunities such as purchasing new commercial premises before a competitor does.

It’s also highly flexible, with options to roll up interest, secure against multiple properties, and tailor repayment terms to fit your exit strategy.

Arranging a full commercial mortgage can take months; a commercial bridging loan lets you complete first and finalise your long-term finance later.