Scratch & Dent Business Purpose Bridge Loans

Not every deal fits neatly into traditional lending criteria. At Market Direct Capital™, our Scratch & Dent bridge loan program is designed for business-purpose transactions that fall just short of prime credit or full documentation standards—but still represent sound opportunities backed by strong real estate.

These loans are ideal for borrowers with minor credit blemishes, gaps in documentation, or slightly off-market properties that would otherwise face rejection by institutional lenders. Our flexible underwriting and asset-based approach allow us to structure custom solutions without overemphasizing minor flaws or missing paperwork.

We fund these loans through a mix of private and institutional capital, including family offices, private equity funds, debt funds, high-net-worth individuals, federal banks, and insurance companies. That diversity enables us to move quickly, offer interest-only payments, and work around underwriting hurdles that might sideline other lenders.

These loans are used to finance commercial, industrial, investment residential, and special use properties for acquisitions, refinances, partner buyouts, or cash-out needs. If your project has strong fundamentals but falls outside conventional guidelines, our Scratch & Dent program may be the right fit.

Common Scratch & Dent Scenarios

• Minor Credit Issues: Late payments, collections, or prior bankruptcy
• Documentation Gaps: Incomplete tax returns, missing income statements
• Transitional Properties: Vacant, value-add, or underperforming assets
• Unique Requests: Creative deal structures that banks won’t consider

Scratch & Dent Bridge Loan Program Details

Loan Amounts	$500,000 to $25,000,000
Loan Terms	6 to 36 months Interest Only
Interest Rate	As low as 10.5%
Origination Points	2% to 3%
Exit Fee	0% to 1%
LTV	Up to 65%
Lien Position	1st Position
Geography	Nationwide (where allowed by law)
Minimum FICO	660 (640 with a strong story)
Recourse	Full Recourse
Property Types	Multifamily, industrial (flex or warehouse), retail, office (diverse mix of tenants), self-storage, mixed-use, hospitality, mobile home parks, marinas, medical office, single family (non-owner occupied), condominiums, gas stations, and special use assets.
Loan Purposes	Acquisitions, refinance, cash-out, partner buy-outs, construction, renovations, debt consolidations, soft costs, and working capital.

Our goal is to bridge the gap between institutional rejection and real-world opportunity. Contact us to learn how Market Direct Capital™ can help you fund your business-purpose project with a Scratch & Dent loan tailored to your needs.