Manhattan Bridge Capital, Inc. (LOAN): Business Model Canvas [Dec-2025 Updated]

You're looking at how Manhattan Bridge Capital, Inc. (LOAN) actually makes its money, especially as a specialized Real Estate Investment Trust (REIT) funding quick, high-yield bridge loans up to \$4 million in the competitive New York market. With shareholders' equity around \$43.4 million as of mid-2025 and Q2 interest income hitting nearly \$1,899,000 on loans carrying 9% to 13% rates, their model is clearly focused on speed and security for real estate developers. It's a tight, relationship-driven machine built on securing capital and managing first mortgage liens-a classic hard money play, but structured for public investors. Want to see the exact partnerships and cost drivers that keep this engine running? Dive into the full Business Model Canvas below.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Key Partnerships

You're looking at how Manhattan Bridge Capital, Inc. (LOAN) builds its funding and deal pipeline through external relationships. These partnerships are critical, especially when the CEO notes that persistent interest rates are weighing on loan closings as of mid-2025.

Banks and brokers providing loan referrals

Specific data on the volume or identity of third-party banks and brokers sending loan referrals isn't explicitly detailed in the latest filings, but the company's focus on the New York metropolitan area, New Jersey, Connecticut, and Florida suggests a network of local and regional intermediaries is necessary to source deals for their short-term, secured loans. The company's lending policy limits the maximum loan amount to the lower of 9.9% of the aggregate loan portfolio or $4 million.

Institutional investors for Senior Secured Notes offerings

Manhattan Bridge Capital, Inc.'s subsidiary, MBC Funding II Corp., has historically relied on public offerings of debt to supplement capital. The key partnership here involves the holders of the 6.00% Senior Secured Notes, which had an aggregate principal amount of $6,000,000. These notes, originally issued in 2016, are scheduled for full redemption on December 15, 2025. The company plans to refinance these notes before their original April 22, 2026 maturity, indicating an ongoing need to secure capital from institutional sources.

Here's a look at the specific debt instrument being retired:

Financial institutions providing credit agreements/lines of credit

The primary credit partnership is the Amended and Restated Credit and Security Agreement with Webster, Flushing Bank, and Mizrahi. This facility provides a credit line of $32.5 million in aggregate, secured by assignments of mortgages and other collateral. As of March 31, 2025, the interest rate on this line was approximately 7.9%, which included SOFR plus a premium and a 0.5% agency fee. This line is set to expire on February 28, 2026, meaning renewal or replacement is a near-term strategic action for Manhattan Bridge Capital, Inc.. The company expects its current credit agreements to be sufficient for the next 12 months as of early 2025.

The key terms of the primary credit facility include:

• Secured by assignments of mortgages.
• Credit availability up to $32.5 million.
• Interest rate approximately 7.9% as of March 31, 2025.
• Expiration date of February 28, 2026.
• Contains covenants limiting borrowing relative to collateral value.

Real estate professionals for deal flow and market insight

Manhattan Bridge Capital, Inc. focuses on originating, servicing, and managing first mortgage loans, typically with interest rates between 9% to 13%. Success in this niche depends heavily on relationships with local real estate professionals-brokers, developers, and investors-who bring the deal flow in the company's core geographic areas. While specific partnership names aren't public, the company's ability to originate loans secured by properties in the New York metropolitan area, New Jersey, Connecticut, and Florida is directly tied to this network. As of December 31, 2024, 95.80% of the loan portfolio was secured by properties in the New York metro area, including New Jersey and Connecticut.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Key Activities

You're looking at the core engine of Manhattan Bridge Capital, Inc. as of late 2025. The key activities revolve around deploying capital into short-term real estate debt and managing that cycle efficiently.

Originating and underwriting short-term first mortgage loans

Manhattan Bridge Capital, Inc. focuses on originating, servicing, and managing a portfolio of first mortgage loans. These are short-term, secured, non-banking loans, often called 'hard money' loans, for real estate investors in the New York metropolitan area, New Jersey, Connecticut, and Florida. The underwriting process is strict, which management pointed to as a reason they remain well-positioned despite market uncertainty. The loans typically bear interest rates between 9% to 13% and have a maximum initial term of 12 months as of late 2024 data. The lending policy also caps the maximum loan amount at the lower of $4 million or 9.9% of the aggregate loan portfolio. Activity in this area directly impacts revenue, as seen in the Q3 2025 results where a slowdown in new loan originations was linked to lower interest income and reduced origination fees. For the three months ended June 30, 2025, origination fees contributed approximately $456,000 to revenue, up from approximately $411,000 for the same period in 2024. However, for the three months ended September 30, 2025, origination fees were lower than the prior year, contributing to a total revenue of roughly $2.04 million for that quarter.

Managing and servicing the existing loan portfolio

Servicing the existing portfolio is critical, especially when interest rate delays cause concerns in the real estate investor community. The company's performance shows they are managing the portfolio effectively enough to maintain profitability even with lower interest income from a reduction in loans receivable period over period. For the nine months ending September 30, 2025, net income was approximately $3,988,000, a 6.9% decrease from the prior year, but still substantial. The company noted that the average paid-off loans exceeded expectations, which showcases the quality of the portfolio they manage. As of September 2025, the company's Total Assets stood at $59.98 Million USD. The focus on managing the portfolio also involves managing costs, as evidenced by a decrease in interest expense for the nine months ended September 30, 2025, which partially offset the revenue decline.

Here's a look at the revenue components from recent quarters:

Securing capital through equity and debt financing

Manhattan Bridge Capital, Inc. maintains a relatively low leverage position, which management highlighted as a strength. For securing debt financing, the company maintains a credit line of $32.5 million with lenders including Webster, Flushing Bank, and Mizrahi, secured by assignments of mortgages. They also have $6 million in outstanding notes maturing in 2026. On the equity side, the company has a mechanism to return capital or manage its share count. On November 20, 2025, the Board authorized a common stock repurchase plan allowing the buyback of up to 100,000 shares over the next twelve months. As of March 31, 2025, Total Shareholders' Equity was approximately $43,326,000, growing slightly to approximately $43.4 million by June 30, 2025.

The capital structure activity reflects management's confidence, even with a recent stock price decline.

• Credit Line Capacity: $32.5 million
• Notes Payable Maturing in 2026: $6.0 million
• Share Repurchase Authorization (Nov 2025): Up to 100,000 shares
• Shareholders' Equity (Q2 2025): Approx. $43.4 million

Managing interest rate risk with adjustable rate clauses

While the search results don't explicitly detail the percentage of loans with adjustable rate clauses, the core business model of short-term loans with fixed interest rates between 9% to 13% implies that managing rate risk is a constant activity. The CEO noted in April 2025 that delays in interest rate reductions were causing concerns in the real estate market, which directly impacts borrower behavior and loan origination volume. The company's strategy to counter this involves its low leverage and strict underwriting. Furthermore, the company monitors its borrowing costs, as a decrease in interest expense was noted as a positive offset to lower revenues for the nine months ending September 30, 2025. This suggests active management of their own cost of funds relative to the fixed rates charged on their assets.

The P/E ratio as of late 2025 was 10.41, which is less expensive than the Finance sector average P/E of about 23.38. This valuation metric reflects market perception of the risk/reward profile, including interest rate risk management.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Key Resources

You're looking at the core assets Manhattan Bridge Capital, Inc. (LOAN) relies on to execute its business strategy. These aren't just line items on a balance sheet; they are the engine for their specialized real estate lending.

The foundation of their stability is their capital base. As of June 30, 2025, the company reported total shareholders' equity of approximately $43.4 million. That's a solid equity cushion, which the CEO, Assaf Ran, points to as evidence of their 'extraordinary low leverage' when announcing the share repurchase program in November 2025. Still, you have to watch that equity trend against the total assets, which stood at $59.98 Million USD as of September 2025.

The human element is definitely a key resource here. You have an experienced management team with what they describe as intimate market knowledge. Assaf Ran, the Chairman of the Board and Chief Executive Officer, specifically highlighted the 'unusual personal commitment of our management' as a factor supporting their confidence in the business, even amid market fluctuations. That kind of hands-on leadership is hard to quantify but critical in niche lending.

Manhattan Bridge Capital, Inc. uses a vertically-integrated loan origination platform. They specialize in originating, servicing, and managing short-term, secured, non-banking loans, often called 'hard money' loans, for real estate investors. They focus on the acquisition, renovation, or improvement of properties. Here's a quick look at the structure of their lending focus as detailed in their recent reports:

This platform is supported by secured credit agreements and cash balances to ensure lending capital is available. As of their March 2025 10-K filing, the company expected its current cash balances and credit agreements to be sufficient for the next 12 months. They maintain a specific credit line for operations:

• Secured credit line totaling $32.5 million.
• Lenders for this line include Webster, Flushing Bank, and Mizrahi.
• The line is secured by assignments of mortgages.

They also have outstanding notes, specifically $6 million in notes maturing in 2026, which are secured by a first priority lien on MBC Funding II's assets. The management plans to refinance notes before maturity and extend or replace the credit line as needed to support growth opportunities.

Finance: draft 13-week cash view by Friday.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Value Propositions

You're a real estate investor needing capital fast for a time-sensitive deal in the New York Metro area. Manhattan Bridge Capital, Inc. offers a value proposition centered on speed and direct access to capital outside traditional bank channels.

Quick loan approval and funding process

Manhattan Bridge Capital, Inc. focuses on providing capital where speed is the primary driver for the borrower. While specific 2025 approval timelines aren't published as a fixed metric, the nature of their business as a hard money lender implies a streamlined underwriting process compared to conventional lenders. This structure supports investors needing to close quickly on acquisition or renovation opportunities.

Short-term, secured, non-banking (hard money) loans

The core offering is short-term, secured, non-banking financing, often referred to as hard money loans. The typical loan term is one year. Structurally, most loans mandate receipt of interest only payments throughout the term, culminating in a balloon payment at maturity. This structure is designed for investors executing a quick turnaround strategy, like fix-and-flip projects.

The scale of the business supporting these propositions can be seen in the Q1 2025 results:

The company's market capitalization as of December 3, 2025, stood at $54.10M, and as of the same date, the forward annualized dividend was $0.46. The trailing dividend yield for the same period was 10.1%.

Flexible financing for real estate acquisition and renovation

Manhattan Bridge Capital, Inc. provides financing that is flexible enough to cover various real estate investor needs in the New York Metropolitan area, including New Jersey, Connecticut, and Florida. This flexibility is demonstrated by the types of loans offered:

• Loans to finance purchases and repairs for quick sale (fix and flip).
• Financing for small, new construction projects.
• Bridge loans to purchase small income producing properties.

The company operates with a lean operational structure, reporting only 6 full-time employees as of late 2025, with the CEO's total compensation reported at $445,875.

High collateral protection via first mortgage liens and personal guarantees

Security for the loans is paramount. The loans are principally secured by collateral consisting of real estate, typically through first mortgage liens. Furthermore, these real estate securities are generally accompanied by personal guarantees from the principals of the borrowing entities. This dual layer of security is a key component of the value proposition for the lender, which translates into the ability to offer this specialized financing. Historically, the average loan-to-value ratio has been around 65.4%, indicating a significant equity cushion in the underlying collateral.

Finance: draft Q4 2025 loan pipeline forecast by next Tuesday.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Customer Relationships

Manhattan Bridge Capital, Inc. employs a direct, relationship-driven model, which the company explicitly cites as a competitive strength. This approach is built upon long-standing relationships with repeat customers. The Chairman and CEO, Assaf Ran, noted in April 2025 that the company remains well-positioned partly due to its strong relationships with our borrowers.

The relationship focus is supported by the structure of their lending, which is highly personalized and secured. A key element in securing these direct relationships is the requirement that loans are generally accompanied by personal guarantees from the principals of the borrowers. This aligns the borrower's personal commitment with the success of the underlying real estate project.

The servicing and management aspect is vertically integrated and rigorous, ensuring continuous oversight throughout the loan term. This is not outsourced; Manhattan Bridge Capital, Inc. specializes in originating, servicing, and managing its portfolio of first mortgage loans. The operational support includes sophisticated systems for client interaction and oversight.

• Rigorous Portfolio Management includes continuous monitoring of underlying performance and compliance.
• Sophisticated systems handle billing, collection and monitoring.
• The process generates a weekly cash collections report.

The nature of the business involves short-term, high-touch lending, as evidenced by the typical loan structure and performance metrics from early 2025. For instance, in the first quarter ended March 31, 2025, the company generated approximately $1,834,000 in interest income on secured commercial loans and approximately $440,000 in origination fees, contributing to total revenues of approximately $2,274,000 for the quarter. As of March 31, 2025, total shareholders' equity stood at approximately $43,326,000.

Here's a quick look at the typical loan structure that defines these customer interactions:

The company's disciplined approach to credit, which includes emphasizing principal protection and requiring personal guarantees, is a core part of how they manage these customer relationships, even when facing market uncertainty, as noted by management in their Q1 2025 commentary.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Channels

You're looking at how Manhattan Bridge Capital, Inc. gets its bridge loans in front of borrowers and keeps stakeholders informed. For a company with only 6 employees, as of late 2025, the channel efficiency has to be high, relying heavily on established networks and digital presence.

Direct sales and origination team

Manhattan Bridge Capital, Inc. operates as a direct lender, meaning the internal team manages the entire process from initial contact to servicing. Given the small total employee count of 6, this suggests a lean operation where senior management, including CEO Assaf Ran, is heavily involved in deal flow generation and underwriting, which is critical for their expedited closing service.

The company focuses its lending activities in specific geographic areas:

• The New York metropolitan area, including New Jersey and Connecticut.
• Florida.

Referrals from banks and real estate brokers

While the internal team handles direct lending, a significant portion of deal flow comes from external sources. The company explicitly notes receiving deal flow from mortgage brokers, alongside the internet and word-of-mouth.

The financial output from these origination channels, specifically the fees charged upon closing a loan, gives you a tangible measure of channel effectiveness. Origination fees are a key component of revenue for Manhattan Bridge Capital, Inc., typically ranging from 0% to 2% of the loan amount, plus potential processing fees.

Here is a look at the origination fees generated through these channels for the first half of 2025:

The total assets under management, which these channels feed into, stood at approximately $59.98 Million USD as of September 2025.

Corporate website for investor relations and services

The corporate website, https://www.manhattanbridgecapital.com, serves as the primary digital hub. It is used both to market services to potential borrowers and to maintain transparency with the investment community.

For investor relations, the site provides access to key documents and updates:

• Investor Relations section.
• Annual Reports.
• Corporate Governance documents.

The company has also engaged external firms for specialized support in this channel, such as American Capital Ventures for Investor Relation Services, though this was noted in a 2014 announcement.

Finance: draft 13-week cash view by Friday.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Customer Segments

You're looking at who Manhattan Bridge Capital, Inc. actually lends money to. Honestly, the customer base is quite specific, centering on professional real estate players who need speed and certainty over traditional bank timelines. These are not the mom-and-pop buyers; these are active investors and developers.

The core clientele consists of real estate investors and developers who require capital for time-sensitive transactions. They are typically seeking short-term, secured, non-banking loans, often referred to as hard money loans, to execute their business plans quickly. Manhattan Bridge Capital, Inc. focuses on funding the acquisition, renovation, rehabilitation, or development of properties.

The financing need is clearly defined by the project type:

• Borrowers needing quick bridge or fix-and-flip financing.
• Clients funding acquisition, renovation, or development activities.
• Investors requiring capital for residential or commercial property projects.

Geographically, the focus is tight, which is key to their underwriting expertise. Clients are overwhelmingly focused on properties located within the New York metropolitan area and Florida properties. To give you a sense of that concentration, as of December 31, 2024, a massive 95.80% of the company's loans were secured by real estate in the New York metropolitan area, which includes New Jersey and Connecticut.

The size of the projects Manhattan Bridge Capital, Inc. targets fits squarely into the small-to-medium category for commercial real estate finance. Their lending policy sets a hard limit on individual loan size. Here's a quick look at the parameters that define the typical customer's need:

These clients are looking for loans secured by first mortgage liens, often accompanied by personal guarantees from the principals of the borrowing entities. The company has originated over 1,280 loans since 2007, showing a long history of serving this specific niche.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Cost Structure

The Cost Structure for Manhattan Bridge Capital, Inc. is heavily weighted toward the cost of capital, which is typical for a mortgage REIT that relies on debt to fund its loan portfolio. You're looking at the direct costs of maintaining the borrowing capacity and the necessary overhead to manage the assets and meet regulatory requirements.

Interest expense on credit lines and notes payable represents the largest variable cost, directly tied to outstanding borrowings. The company is actively managing this, evidenced by the planned redemption of its 6.00% Senior Secured Notes due April 22, 2026, scheduled for December 15, 2025, which will remove $6,000,000 principal amount from the books and reduce future interest obligations.

Here is a look at the key cost components based on the latest reported figures, using the nine months ended September 30, 2025 (9M 2025) as the most current operational data available, alongside the prior full year for comparison.

General and administrative expenses (salaries, corporate overhead) show a slight increase year-to-date through September 30, 2025, compared to the same period in 2024, indicating ongoing operational costs even as revenue softened. These costs cover the fixed overhead necessary to operate the business, including executive compensation and compliance functions.

Costs associated with loan origination and servicing are less explicitly broken out as an expense line item, as origination fees are recorded as revenue. However, the lending policy indicates that origination fees, or points, typically range from 0% to 2% of the original principal amount of the loan. Servicing costs are generally absorbed within the G&A structure.

REIT compliance and dividend distribution costs are a mandatory outflow due to the company's structure as a Real Estate Investment Trust (REIT). The cost is driven by the required distribution of taxable income to shareholders.

• Forward Annualized Dividend Rate (Late 2025 estimate): $0.46 per share.
• Latest Declared Quarterly Dividend (October 2025 payment): $0.115 per share.
• The dividend yield is cited around 9.75% to 10.5% (forward/TTM) as of late 2025.
• Dividends payable on the balance sheet as of June 30, 2025, were $1,315,445.

The company's cost management strategy appears focused on reducing debt load, as seen by the decrease in interest expense from 2023 to 2024, which was attributed to a reduction in borrowed amounts from the Webster Credit Line.

Finance: review the impact of the December 15, 2025, note redemption on Q4 2025 interest expense by Friday.

Manhattan Bridge Capital, Inc. (LOAN) - Canvas Business Model: Revenue Streams

You're looking at how Manhattan Bridge Capital, Inc. actually brings in the money, which for them is almost entirely from lending activities. Their revenue streams are straightforward, focusing on the yield from their secured commercial loans and the upfront fees they charge to put those loans in place. Honestly, it's a classic real estate finance model, but the numbers tell the real story of the current environment.

The primary engine is the interest income on secured commercial loans. For the second quarter ending June 30, 2025, this stream brought in approximately $1,899,000. That's the bread and butter. To supplement that, you have the origination fees on new loans, which were about $456,000 for the same Q2 2025 period. It's interesting to note that while interest income dipped slightly compared to the prior year's Q2, the origination fees actually saw an increase, suggesting some resilience or shift in deal structure.

When you look at the first half of the year, the cumulative picture is clearer. The total revenue for the six months ended June 30, 2025 was approximately $4,629,000. This shows the overall scale of their top-line business activity before expenses. The nature of these loans dictates the income potential; they are high-yield, which is necessary to cover their own cost of capital and generate shareholder returns. The typical interest rates charged to borrowers generally fall between 9% to 13%.

Here's a quick breakdown comparing the two main components for the most recent reported quarter and the quarter prior, just so you see the mix:

The business model relies on maintaining a portfolio that generates these high yields, but the volume of new originations directly impacts the fee income. You can see the pressure from a reduction in the overall loan book size impacting the interest component in Q2 2025.

To give you a slightly broader view of the first half performance, which feeds into that $4.629 million total, here are the components for the six months ended June 30, 2025:

• Interest income on secured commercial loans (6 months ended 6/30/2025): Approximately $3,733,000.
• Origination fees on new loans (6 months ended 6/30/2025): Approximately $896,000.
• Total revenue for the six months ended June 30, 2025: Approximately $4,629,000.
• Typical interest rate charged to borrowers: Between 9% to 13%.

If onboarding takes 14+ days, churn risk rises, but for Manhattan Bridge Capital, Inc., the immediate risk is the volume of new loans they can place at those high-yield rates given the current interest rate environment. Finance: draft 13-week cash view by Friday.