Bridging finance for business

Business transactions rarely line up neatly. The new warehouse settles in March, but the old one will not sell until May. The refinance is approved but the new lender needs three more weeks. A business purchase completes before the property released to fund it has sold. Bridging finance carries you across that gap.

How does business bridging finance work?

A bridging loan is secured on property, often the property being sold or one already owned, and repaid from a specific future event. Because the repayment source is known, the loan is usually structured so that nothing is paid during the term. Interest is prepaid or added to the balance, and the whole amount is cleared from the sale or refinance proceeds.

Bridging loans run from $20k to $5m. No valuation is needed, and approval within the hour is possible on a complete file, which matters when a settlement date cannot move.

Typical bridging situations

Situation	The gap	Exit
Buying new premises before selling the old	Deposit and settlement funds	Sale of old premises
Settling while a refinance completes	Settlement amount	New long-term loan
Buying out a partner	Purchase price	Refinance or property sale
Large contract with delayed payment	Working costs	Contract payment

Curious where you would stand? Ask us directly. Enquiring leaves your credit file untouched, and you will hear back from someone who has actually read what you wrote.

The exit is everything

A bridging loan is only as good as its exit. Before committing, check:

1. Is the event certain? An unconditional contract of sale is very different from a property that has not been listed yet.
2. Is the timing realistic? Allow for settlement delays and the time a property can take to sell in your market.
3. Is the amount enough? Selling costs, stamp duty on any purchase and the added interest all reduce what is left.
4. What is plan B? If the sale falls through, could the loan be refinanced or another asset sold?

You are not locked into a rigid end date; the loan can run for as long as the business genuinely needs it, which takes pressure off if things slip, but every extra month adds cost. Our guide to planning the exit works through each question.

Bridging finance or a caveat loan?

Many bridging needs are met with a caveat loan, because a caveat can be lodged quickly and the term is short. Larger or longer bridges may suit a registered mortgage. The structure is chosen around the property, the amount and how long the gap is likely to last.

Stamp duty and timing

If the bridge involves buying property, stamp duty and settlement adjustments need to be funded too. Each state’s revenue office sets its own duty rules, so check them early with your conveyancer.

Quick recap

• Short-term funding until a sale, refinance or payment arrives
• Secured on property, $20k to $5m
• Interest commonly prepaid or added, so no repayments during the term
• The exit event must be realistic and documented

From enquiry to an answer

You send a 60-second enquiry with the amount, the purpose and a few facts about the business. A real person reads it, usually the same business day, and calls to fill in the gaps. For unsecured options they will ask for recent business bank statements, which can normally be shared through a secure read-only link. For property-secured options they will ask about the property and what is owed on it, with no valuation needed. You then see the offer in plain terms, including the total cost, and decide whether to go ahead. A credit check happens only at that point. If something about your situation is unusual, say so early; it is far easier to plan around a known issue than a surprise.

Getting your details together

Have these within reach and the process moves quickly, because each one answers a question the assessor would otherwise have to come back and ask:

• ABN, business structure and how long you have traded.
• Recent business bank statements, ideally shared online.
• What the money is for and how it will be repaid.
• Any tax debt, default or arrears you should mention up front.
• Contact details for anyone else who would need to sign.

Getting the enquiry right

Every question on the form is there for a reason: it changes which funding fits. Describe the business as it stands today rather than the version you expect in six months. Mention any default, tax debt or recent decline in the notes. We look at those situations all the time, and knowing early lets us head straight for options that can actually work.

Put your funding on call

Have a figure in mind? Put it in the enquiry. There is no credit check for asking, you will not be passed around a panel of lenders and you will speak to someone who has read your answers. Take a moment to get those answers right. Accurate details about revenue, time trading and credit mean we can match you properly first time, without the back and forth.