If circumstances arise in which a commercial borrower finds the necessity to procure a bridge loan to facilitate short-term financing, a commercial bridge loan is a helpful solution. Commercial bridge loans are specially designed forms of interim financing that are used whenever a commercial borrower expects to sell a particular property within a brief period of time. They are also used for refinancing that is due to occur in the near future or to retrieve a property from foreclosure.Commercial loans can also be used to take advantage of an opportunity that is quickly fleeting. These loans are most commonly used during the time in which a commercial real estate developer is waiting for permits to be processed for a certain property. The main advantage of commercial loans is that they can be arranged quickly and have much less documentation attached to the transaction than a conventional commercial bank loan.The primary disadvantage of securing a commercial bridge loan is that these types of loans tend to be more expensive overall, than conventional financing because there is a need to compensate for the higher loan risk. Typically, they will have higher points, interest rates and other costs.Typically, the interest rates for loans are usually between twelve and fifteen percent. The terms are typically up to one year and from two to four points may be charged. The loan to value ratios usually do not go higher than sixty five percent for any single commercial property.A commercial bridge loan may be available for a predetermined amount of time, which is referred to as a, “closed” loan, or, if there is not a specific payoff date, “open.” In the latter case, a payoff may be required after a certain time.Commercial loans are used in different types of corporate finance and venture capital for different purposes. They can be used to infuse small amounts of money to prevent a company from running out of financial resources when there are major successive private equity financial transactions. They can also be used to sustain companies that are in distress during the periods of time in which the companies are seeking larger investors. Finally, commercial bridge loans are used for final dept financing during the period of time prior to a first public offering. This will often carry a company temporarily while the offering is being considered.