Quick answer
Bridging finance is short-term business funding that covers the time between needing money now and a known payment arriving later, such as a property sale, a refinance or a contract payout. It is usually secured by property, with interest prepaid or added to the loan so nothing needs to be paid until the expected money lands.
Key points
- Covers the gap until a known payment arrives
- Usually secured by property
- Interest can be prepaid or added; nothing to pay during the term
- Flexible if the payment runs late
Timing problems, not money problems
Sometimes a business has the money coming, just not yet. A commercial property has sold but settlement is two months away. A bank has approved a refinance but needs more paperwork. A major contract pays on completion and the materials are due now. Bridging finance exists for these moments: it lends against what you have, to be repaid from what is coming.
How a bridge is structured
| Element | What it means |
|---|---|
| Security | Usually residential or commercial property |
| Amount | $20,000 to $5,000,000 depending on equity |
| Interest | Prepaid or added to the loan |
| Repayment | One payment when the expected money arrives |
| Term | Matched to the expected date, with flexibility |
What makes a strong bridge
- Evidence of the incoming money: a sale contract, refinance approval or contract terms.
- Enough equity to cover the loan and the interest that will be added.
- A buffer in case the money arrives later than planned.
No valuation is needed before approval, which removes one of the slowest steps in property lending.
Bridging when credit is complicated
Because a bridge relies on property and a defined repayment, credit history matters less than for most loans. That makes bridging useful for businesses with tax debt or past defaults that need to act quickly, for example to pay the ATO while waiting for a refinance once the arrears are cleared.
Related options
If the payment date is uncertain or there is no specific incoming sum, a short-term business loan or second mortgage may suit better. If you need funds in days, a caveat loan is often the fastest bridge.
An illustrative bridge
A family-owned engineering business has agreed to sell a vacant industrial lot it no longer needs. Settlement is set for ten weeks away. In the meantime, a supplier offers a large discount on raw materials if paid within the fortnight, and the business wants to take it.
A bridging loan secured over the industrial lot pays the supplier now. Interest is added to the loan, so the business pays nothing during the ten weeks. When the sale settles, the proceeds repay the bridge. The discount saved more than the cost of the bridge, and the business did not have to empty its operating account.
The risks to manage
The main risk is that the expected money arrives late or comes in lower than planned. Sales can fall over, refinances can stall, and contract payments can be disputed. Build in a margin of equity and time, and be realistic about the amount you will actually receive after costs. Because terms are flexible, a late payment is usually manageable if you talk to the lender early.
Tell us what is coming
Enquire in a minute with the amount, the property and the payment you are waiting on. There’s no credit check upfront, a human reviews it, and one team handles it. Ask about bridging finance.
Frequently asked questions
What counts as a known payment?
A signed property sale, an approved refinance, a contract milestone, an insurance payout, a tax refund or a business sale settlement. The clearer the evidence, the easier the bridge.
What if the money arrives late?
The terms are flexible, so the loan can stay in place as long as you need it. Tell the lender early so the extension is simple.
Is bridging finance only for property deals?
No. Businesses use bridges for many timing gaps, but the loan is usually secured against property because that gives the lender confidence.
How quickly can a bridge be arranged?
On straightforward deals, funding in as little as 24 hours is possible once documents are signed.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a person who handles unusual deals calls you back.