When a loan reaches its maturity date, most borrowers expect one of two outcomes: a refinance or a renewal. But in today’s environment—marked by tighter credit conditions, cautious lenders, and rising interest rates—that next step isn’t always guaranteed.
So what happens when your lender says no?
At Edgewater Lending, we’ve worked with numerous property owners and investors who were suddenly left without a viable path forward. That’s why we created this short guide on what to do when your lender won’t extend, renew, or refinance your loan—and how bridge financing can help you retain control of your asset and your timeline.
1. Understand Why You Were Declined
Lenders typically decline renewals or refinances for one or more of the following reasons:
- Debt service coverage concerns
- Declining property performance
- High loan-to-value ratios
- Weakened sponsor credit or net worth
- Changes in market appetite (e.g., pulling back from office, retail, or transitional assets)
Understanding the “why” will help you determine the best alternative strategy—and what type of capital provider might be a better fit.
2. Don’t Rush Into a Distressed Exit
When facing loan maturity without renewal, many borrowers feel forced to sell—even if the market isn’t right or the property isn’t stabilized. That’s where mistakes and losses happen.
Bridge loans offer a critical alternative: short-term financing that gives you time to improve the asset, stabilize income, or wait for a more favorable sale window.
3. Consider Bridge Financing to Regain Control
Bridge capital is a fast-moving, asset-based lending option that fills the gap between today’s pressure and tomorrow’s exit. Here’s how it works:
✅ Speed
Bridge lenders like Edgewater can often close in 1–3 weeks—faster than traditional institutions.
✅ Flexibility
We structure deals around your equity, timeline, and exit plan, not rigid bank underwriting.
✅ Control
Most importantly, bridge financing allows you to choose your path—whether that’s a strategic sale, refinance, or value-add execution.
4. Know When to Engage
You don’t need to wait until default. The best time to engage a bridge lender is as soon as renewal or refinance conversations stall. We can work in parallel with your legal or advisory team to keep the process moving and prevent last-minute fire drills.
Explore Your Options Before the Clock Runs Out
If your current lender is unwilling to renew or refinance, don’t let your back get pushed against the wall. Bridge financing can give you breathing room—and the leverage to choose the right outcome instead of the only one left.
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