A TI Briidge Loan is a short-term loan provided to franchisees to help cover the final draw of the construction and real estate improvements for their franchise location. Once a Certificate of Occupancy is obtained, the loan would be paid back, with interest, as soon as the TI Credit is received from the Landlord.
How it works
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A franchisee completes an application, background check, and brief underwriting
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If approved, the franchisee would receive a TI briidge loan ~30-45 days before a Certificate of Occupancy
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Once a Certificate of Occupancy is granted they must submit all lien releases to their Landlord
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The Landlord typically has up to 30 days to pay back the TI Credit
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Once TI Credit is received the franchisee pays back the TI briidge loan, with interest
Tenant Improvement (TI) Credit
A Tenant Improvement (TI) is an alteration or renovation made to a commercial real estate property leased by a tenant to make it suitable for their specific use or business needs.
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A Tenant Improvement (TI) Credit is a credit provided by a Landlord to a Tenant for the purpose of customizing or improving a leased space to meet their specific needs. This credit helps the Tenant by offsetting the costs of construction. The amount of the allowance is usually negotiated upfront as part of the lease agreement.
TI Briidge Loan
A TI Briidge Loan is valuable for anyone who has a large brick & mortar space to improve including:
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Salon Studio Franchisees
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Gym & Fitness Franchisees
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Restaurant Franchisees
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Hotel & Hospitality Franchisees
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TI Briidge Loan Averages:
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Average loan size: $100,000 - $400,000
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Average loan approval timeline: 1-2 weeks
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Average loan duration: 60-90 days
