A bridging loan is short-term finance that covers a gap in timing. The most common use is buying a new commercial property before the existing one is sold, but bridging also covers settlement shortfalls, business cash-flow timing, and the period while longer-term finance is being arranged. The defining features are a short term and a clear exit: the way the loan will be repaid.
Because they’re short-term and often arranged quickly, bridging loans usually carry higher rates than standard term debt, and interest can sometimes be capitalised rather than paid monthly. The lender’s focus is less on ongoing serviceability and more on the security and, above all, the exit, whether that’s a sale, a refinance, or incoming funds.
At Loanworx, we arrange bridging finance secured against property and other business assets. As an experienced finance broker, we structure the facility around a realistic exit, model the peak debt and cost, and match you to a lender comfortable with the timeframe, so a timing gap doesn’t cost you the deal.
Caught between a purchase and a sale, or need to move before longer-term finance is ready? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Bridging finance is built around a short term and a clear exit. Here are the three things that shape it.
The most common scenario: you need to buy before you sell, or settle a purchase before funds arrive. The bridging loan covers the gap, then reduces or clears once the sale completes or the longer-term finance is in place.
Repayments can sometimes be made monthly, or the interest can be capitalised, added to the loan and settled at the end, which preserves cash flow during the bridging period. Which suits you depends on the deal and the lender.
Bridging finance lives or dies on the exit, the defined way the loan will be repaid, usually a sale, a refinance, or incoming funds. A clear, realistic exit is what makes the facility work and keeps the cost contained.
The risk with bridging finance is an exit that slips: a sale that takes longer than expected, or a refinance that doesn’t complete. When that happens, a short-term loan can become an expensive one. The way to manage it is to plan the exit, and the cost, before you draw the loan.
We structure the bridging facility around a realistic exit, model the peak debt and the total cost over the likely bridging period, and match you to a lender comfortable with the timeframe. The aim is a clean bridge that does its job and is repaid as planned, not one that drags.
Bridging is often part of a larger transaction. Explore our other commercial services below to find the right fit for your business.
SMSF Loans
Borrow inside your self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement.
Vehicle and fleet finance through chattel mortgage, lease or hire purchase, structured for your cash flow and tax position.
Funding to buy a business or practice, including goodwill where the deal and lender support it.
Finance to acquire or refinance commercial investment property across office, retail, industrial and specialised assets.
Funding for residential and commercial development, from small builds through to multi-stage projects.
Review and refinance existing commercial debt to sharpen the rate, release equity or restructure the facility.
Overdrafts, lines of credit and cash-flow facilities sized to your real working capital cycle.
Bridging finance is assessed differently from term debt, with the focus on security and exit. These are the factors that matter most.
Bridging loans are secured against property or other business assets, and the loan-to-value ratio against that security drives how much is available and the rate. Stronger, more liquid security supports better terms.
We work out what your available security can support.
The single most important factor. Lenders want a clear, realistic exit, a sale, a refinance, or incoming funds, with evidence behind it. A weak or vague exit is the most common reason bridging deals are declined.
We help you present an exit the lender can rely on.
Bridging is short-term, often a matter of months. Lenders look at the maximum debt during the bridge, including any property you’ll briefly hold on both sides of a transaction.
We model the peak debt so you go in knowing the full exposure.
Because rates are higher and interest may be capitalised, the total cost depends heavily on how long the bridge lasts. A short, clean bridge is far cheaper than one that drags.
We model the cost across realistic timeframes before you commit.
Not every lender writes bridging finance, and those that do differ on appetite, speed and how they handle capitalised interest. Matching the deal to a lender comfortable with the timeframe and the exit is where the value sits. We approach the lenders best suited to your scenario rather than risking unnecessary declines.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
A bridging loan is short-term finance that covers a gap in timing, most commonly when you need to buy a new property before selling an existing one, or settle a purchase before funds arrive. It’s defined by a short term and a clear exit, the way the loan will be repaid, usually a sale, a refinance, or incoming funds. Once the exit completes, the bridging loan is repaid.
The usual triggers are buying before you sell, settling a purchase before a sale or longer-term finance completes, or covering a short-term shortfall while permanent funding is arranged. It suits situations where the opportunity or deadline won’t wait for the slower-moving finance to catch up. We help you decide whether bridging is the right tool or whether another structure fits better.
Bridging loans are short-term, typically running from a few weeks to several months, occasionally up to a year, depending on the exit. The shorter and cleaner the bridge, the lower the cost. We structure the term around a realistic exit and flag early if the timeframe looks tight, so the loan doesn’t drift into a more expensive position than planned.
It depends on the deal and the lender. Some bridging loans require monthly interest payments, while others allow the interest to be capitalised, added to the loan balance and settled at the end, which preserves cash flow during the bridge. We’ll work out which approach suits your cash flow and match you to a lender that offers it.
The exit strategy is the defined way the bridging loan will be repaid, typically a property sale, a refinance to longer-term debt, or incoming funds. It matters because bridging finance is short-term: the lender is lending on the strength of the exit as much as the security. A clear, realistic exit is what gets the deal approved and keeps the cost contained, which is why we plan it carefully upfront.
They generally carry higher rates than standard term debt, because they’re short-term, arranged quickly, and carry more timing risk. The total cost depends heavily on how long the bridge lasts, so a short, clean bridge can be very cost-effective relative to the opportunity it unlocks. We model the cost across realistic timeframes so you can weigh it against the benefit before committing.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your business.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
Level 15/412 St Kilda Rd
Melbourne VIC 3004
Loanworx Group Pty Ltd as trustee for Loanworx Group Trust and brokers representing it, are credit Representatives of Loanworx Group Licencing Pty Ltd (Australian Credit Licence number 495267). Please note, we adopt best practice regarding Australia’s privacy legislation. Your contact information will be collected by us and by our aggregator, and its subsidiaries and related businesses. We use this information to stay in contact and provide our services to you, and we may also use your information to offer or provide you with additional products or services or ask for your feedback. We may not be able to assist you if we do not have your current contact information. We may need to disclose your information to our associates, contractors, and service providers, who may be overseas. Our Privacy Policy available at www.loanworx.com.au contains information about how you can access your personal information and request corrections or complain if you are dissatisfied with how we have dealt with your personal information.
Copyright © Loanworx | Privacy Policy
