Alliance Business Capital offers Bridge Loans through a handful of Lending Partners which include Banks as well as Private Firms.
The minimum Bridge Loan amount is currently $1 Million depending on the Lending Partner with some Lenders having a $2 Million minimum loan amount.
Alliance works hand in hand with our Bridge Lending Partners to secure our clients financing in a timely manner.
Please see below for typical Bridge Loan terms.
Bridge Loan General Guidelines
|Primary Property Types:||Multi-Family, Office, Retail, Light Industrial, Mixed- Use|
|Secondary Property Types:||Self-Storage, Student Housing, Hospitality, and certain Specialty Use Properties|
|Typical Loan Size:||Minimum Loan Amount of $1 Million
Maximum Loan Amount is $40 Million, higher loan amounts considered on a case by case basis
|Loan Purpose:||Transitional, Value-add and Event Driven|
|Leverage:||Leverage is dependent on Property Type, Location and Overall Situation but typically runs in the 65% - 80% range with 80% including mezzanine debt and available only on a case by case basis|
|Recourse:||Recourse and Non-Recourse Loans are available, however most investors primarily offer Non-Recourse Loans with an exception for a bad-boy carveout|
|Prepayment:||Prepayment Penalties vary among Investors, however there is typically some sort of prepayment penalty such as a guarantee of a minimum amount of interest|
|Debt Service Coverage:||None, Partial or Non-Cash Flowing Properties will all be considered|
|Amortization:||Typically Interest Only, however Amortization structured on a deal by deal basis|
|Origination Fees:||Alliance Business Capital charges an Origination Fee ranging from 1% to 3% of the final loan amount payable through loan proceeds at closing.
Additionally, most investors will have an origination fee of 0% - 3% determined on a deal by deal basis
|Additional Fees:||Alliance Business Capital has an engagement fee of $1500 - $2500 which is non-refundable.
Additionally you will be required to cover any/all third party fees that the investor may require. Any/all closing costs are the borrowers responsibility
We need the following items upfront on all bridge loans.
- Commercial Loan Application
- Personal Financial Statement
- Credit Authorization – cost of credit is approx. $26 depending on State Tax
- Property Financials
If there is an existing property appraisal please upload that along with the above items to our secure online portal.
Alliance Business Capital will function as a Intermediary/Advisor on all Bridge Loan transactions. We do not fund loans directly and depend on our Bridge Lending Partners for funding of all Bridge Loans originated by Alliance Business Capital.
We appreciate the opportunity to assist you with all of your Bridge Loan needs.